Digital Marketing Strategies and Analysis for Hospitality Industry

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This report delves into the digital marketing landscape of the hospitality industry, specifically examining Marriott and Hilton Hotels. It begins with an introduction to digital marketing and its significance in the hospitality sector, emphasizing the need for a strong online presence. The report then conducts an environmental analysis of Marriott, utilizing SWOT and PESTLE frameworks to assess its internal strengths and weaknesses, as well as external opportunities and threats. A key component involves comparing the digital presence of Marriott and Hilton, analyzing their use of digital tools, platforms, and channels. The report further outlines a marketing communication plan and discusses methods for monitoring and measuring the effectiveness of digital marketing efforts. The analysis covers various aspects of digital marketing, including social media, e-commerce, and the use of innovative technologies to enhance customer experience and gain a competitive edge in the market. The conclusion summarizes the key findings and recommendations for improving digital marketing strategies in the hospitality sector.
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MARKETING DIGITAL
HOSPITALITY
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Environmental analyses .............................................................................................................1
TASK 2............................................................................................................................................5
Compare digital presence of Hilton hotel and Marriott hotel.....................................................5
TASK 3............................................................................................................................................8
Marketing communication plan..................................................................................................8
TASK 4..........................................................................................................................................11
Methods of monitoring and measuring effectiveness of digital marketing...............................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................14
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INTRODUCTION
Digital marketing can be defined as marketing efforts which have involvement of electronic
device or internet (Casais, Fernandes and Sarmento, 2020). Company invests time and money to
market their products and services so that mass audience can get to know about its products and
can attract potential buyers towards the organisation. Hospitality digital marketing means to
maintain the online presence of the enterprise. Marriott hotel is chosen for the present study, it is
the firm that works tremendously in hospitality industry. It has generated 20.75 billion in the
year 2018 and net income of hotel was 1.90 billion in the same year. E-commerce activities
support companies in generating more profit hence now it has become necessity of Marriott hotel
that to enhance its online presence by taking support of digital marketing activities. Current
assignment will conduct environmental analyses of Marriott hotel. It will examine various digital
tools and channels that can be used by company to gain competitive advantage in market.
Furthermore, report will organise digital marketing activities so that capabilities of Marriott can
be raised and firm can sustain in such competitive market significantly. Methods of monitoring
digital marketing will be evaluated in this study.
TASK 1
Environmental analyses
Marketing audit is the tool which is used to conduct environmental analyses of company.
Marriott is the leading brand that operates across the world. It offers luxurious services to wide
range of consumers (Dinis, Breda and Barreiro, 2020). This is defined as to undertake the review
of external and internal analysis that aids to conduct the business functions systematically and
effectively.
SWOT analyses (Internal audit)
This is the tool or method which is generally used by firm to analyses its internal position
in market.
Strength
Global presence: Marriott hotel has branches worldwide. This creates opportunity for
firm to gain competitive advantage and generating more revenues. Global presence of
company helps Marriott in raising its brand image ( Goh and Okumus, 2020). This is
beneficial aspects for business and have positive impact on digital environment of
organisation as people are familiar with the name hence they take more interest in
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experiencing services of hotel. Marriott uses social networking site digital channel to
enhance awareness among global consumers. This impact positively in term of raising
profit, and controlling over cost as well.
Innovative products: Marriott offers wide range of products to its consumers, it ensures
that people get luxurious services here so that they become loyal towards the brand. It
continuously innovates its products and services so that interest of consumers can be
raised. Use of social medial digital channel supports the firm in knowing more about
needs of consumers and making necessary changes in existing services so that entity can
serve them satisfactory services (Inversini, De Carlo and Masiero, 2020).
Loyal consumers: Marriott hotel always ensure to serve consumers well hence it takes
assistance of social networking sites as digital marketing channel. This aids in making
contact with end users and knowing about their wants. By this way firm serve them
accordingly which help business in raising its digital environment and making people
loyal towards the brand.
Cost structure- The low cost structure of the chosen enterprise aids to sell the large
number of products at low price. However, this also aids to attract large number of
customers within market.
Skilled labour workforce- Marriott has skilled labour workforce who carry out the
business unction effectively. This firm has invested the largely into providing training to
the workers and this resulted into conducting the performance proficiently.
Product portfolio- The chosen enterprise has the large portfolio of commodities as they
have diverse range of categories. In order attract the customer, this entity also offers the
unique product that are quite different from competitors.
Weakness
Lawsuits: One of the major challenge that faced by firm is paying civil penalty, as
Marriott has blocked the facility of WI-FI in an event and guests faced huge trouble and
for that firm agreed to pay the penalty of 600000 which has affected its brand image
badly and this information was circulated through social sites frequently.
Service standardization overemphasis: This is considered a major weakness of Marriott
as it emphases more on service standards hence sometimes fail to meet consumers’ needs.
Stringent adherence affected employees’ moral badly.
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Diversification in the workforce- The workforce of the chosen enterprise is covered with
most of the local workers who belong to other racial backgrounds. Hence, it can be stated
that lack of diversification makes difficult for employees to adjust in workplace.
Decision making- It is highly centralised and decision of the team needs to be approved
by certain officials. This also leads to reduce the efficiency in operation by conductive
each activity in timely manner (Kim, Kang and Kim, 2020).
Service standardization- This entity follows the system driven approach and each
employee given a set of procedure. However, the stringent rules and regulations brought
down the morale of employees.
Opportunities
Globalisation: entering into new global market can create opportunity for Marriott, as it
uses social sites to make connection with buyers, this channel helps firm in knowing
needs of local international market hence company easily make plan before entering into
global market which gives success to the hotel (Koc and Boz, 2020).
Shifting consumer behaviour: this is another opportunity to Marriot, as now a day’s
people use social sites to know about reviews of other consumers about services of
business unit. Through social sites Marriott can get to know about behaviour of buyers
and can implement innovation accordingly in the hotel so that sales can be raised. Hence
it is the great opportunity to hotel and impact positively on digital environment of
Marriott hotel.
Enhancement in education and training to the workers create the systematic and better
workforce. This aids to enhance the brand image of the enterprise and also open the
opportunities to expand their business operation in future.
Threats
Competition: This is major threat to Marriott as Hilton hotel has great presence over e-
commerce, it is continuously making efforts to raise its digital presence. This can affect
revenue of business because customers are also taking interest in its services hence high
competition is threat to Marriott and its digital environment.
Economic recession- Global recession has hit the working of hospitality business
adversely and this highly affect the brand image of the enterprise.
Pestle analyses
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This is a framework that aids to firm to understand market dynamics and also improve
business functions continually. Henceforth, Pestle analysis will be outlined in following context
as are-:
Political factors- It plays significant tool in order to determine the factors that has huge impact
on chosen enterprise. Therefore, major political components that can impact the working of the
entities are as danger of terrorism, international relations and political climate within the popular
destination (Saura, Reyes-Menendez, and Palos-Sanchez, 2020). Hence, the following
components are major threat and this also impacts the brand image of enterprise. In order to cope
up with it, Marigot's needs to undertake the costly security measures to prevent from such threat.
Economic factor- The macro environment components such as inflation rate, saving rate,
foreign exchange rate and economic cycle determines the aggregate demand and investment
within economy. So, it has been noted that economic environment of Marriott is not favourable
and this impacts the growth and development of The one of the major threat is that income
inequality between the sections of society reduces the ability of people to travel and stay at
hotels.
Social factors- Changes in social factors leads to have impact in demand for entity product and
services. Henceforth, the culture, belief, attitudes plays crucial role to sustain the demand of
particular commodity in market. Marriott has a website that assist people to book their rooms as
per their choices (Sota, Chaudhry and Srivastava, 2020). Thus, chosen enterprise provide the
services to customer's in three categories as The luxury, the premium and the select. Also, to
retain the customer's entity has launched a loyalty programmed called out as Marriott Bonvoy
that main purpose to provide customer's with free hotel stays.
Technological factors- In the hospitality services, the technology must be used beyond the
standards to deliver excellent customer satisfaction. Use of technical advancement also affect
positively over price structure and competitive landscape of industry within shorter period of
time. Company needs to be aware about the changes so that innovative approaches can be taken
to maximise the profitability of enterprise. Marriott uses the travel website, it helps the people
check the prices of hotel, to read reviews and commentary on the attributes and services of
hotels. Therefore, chosen enterprise price must ensure to undertake future innovation effectively
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so it further rise in level of profits and this results into sustainable profit for a longer period of
time.
Environmental factors- the varied norms and standards impact the profitability of the enterprise
in huge context. Therefore, condition of the climate highly impact the ability of chosen firm to
manage the transportation of both resources. In current era, Marriott is facing the major
competition with enterprise like Airbnb that offers variety of rooms in cheaper prices. This has
highly impacted the operations of chosen enterprise. Additionally, the current major environment
components that interrupt the working of the business is prices of fuel. Falling the prices of oil
can lead to reduce the cost of travel and this will enhance the demand for hotel rooms. Due to
enhanced temperatures from global warming leads to make some beach resorts. Those
developments can force the closure or relocation of hotels (Tweneboah-Koduah, Anning-Dorson
and Nyamekye, 2020).
Legal factor- If hotel is situated near area with high crimes that it also affect the brand image of
enterprise. Thus, laws legislation and policies impacts the working of the enterprise in huge
context. Number of the discrimination laws are placed by legal authorities in terms to protect the
employees and this also ensure that each one needs to be treated fairly and must be given the
same opportunities regardless of gender, age and disability etc. This aids to maintain the brand
image and sustainability within enterprise.
TASK 2
Compare digital presence of Hilton hotel and Marriott hotel
Digital presence termed out as that how an organisation appears on online platform. It is
important in major online media as this enables firm to have a two way relationship where
consumer can communicate with firm effectively. Therefore, key digital tools, platforms and
channels used by the enterprise are outlined in below contexted manner as are-:
Basis for comparison Marriott Hilton
Digital key tool Marriott international
uses mobile application
to look over
personalisation
services to guest. At
Hilton uses smart digital keys
with additional convenient and
secure way to access to room.
Customers who booked
directly with Hilton can select
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time, when guest come
to hotel they must go
through mobile check
in and they get pre-
programmed key card.
This key will
automatically convey
the guest when their
room is ready.
This entity has
embraced the design
thinking for digital era
and developed key
strategy with including
Airbnb and other home
sharing start-ups.
It is firm that is looking
over to provide high
touch personal services
with high tech
connected rooms.
their desired room on the
mobile device with use of
digital check in. This entity
has created the application as
Hilton Honor application in
this guest can check in before
the arrival.
Platform Marriott international has
launched digital platform for
Marriott Bonvoy events as
MarriottBonvoyevent.com.
It is website that defined as
tool for conducting meetings.
This also provides interactive
map features that allows
planners to search for hotel for
their choices. This site also
Hilton improves the
digital guest experience
with new platforms as
connected room
platforms. Thus, main
purpose behind this is
to deliver the
outstanding experience
and to offer operational
efficiencies to hotel
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provides the information such
as number of guest, meeting
space and floor plans etc. It is
website that also navigates the
depth and breadth of Marriott
international portfolio to
choose the property that best
fits the needs of events.
operators and owners.
This also enables the
better troubleshooting
and this is inclusive of
pushing software
updates with the use of
platform that aids to
create the new
experience and also
offer the new features.
Also, Hilton decided to
partner with Red Hat in
terms to build the
hybrid cloud
computing
environment so this can
creates and spread the
usage of application
more fast and effective.
Channels Marriott uses the social
channels as Facebook,
Messengers, Snapchat and
Twitter etc. Henceforth, it can
be stared that Mattiot uses the
social media channels to get
interact with customers.
Apart from using channels as
print and television, Hilton
uses the sales promotion
methods that inclusive of
providing discount facility to
the customer who booked their
room with application as
Hilton Honor. It provides
offers such as free net access,
late check out, digital check
inns etc. Therefore, sales
promotion provides the
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benefits for the short time. On
the other hand, this entity also
uses the channels as Facebook,
YouTube and Twitter to
communicate customer about
the product and services.
TASK 3
Marketing communication plan
Executive summary – in this a digital marketing plan has been developed which include many
elements. The SWOT analysis has been done to set or form goals and objectives. Moreover,
STP has been explained to determine target audience. Also, content strategy has been discussed
as well along with different digital tactics and measuring KPI’s.
Mission- To be the one of the best hospitable company by delivering excellent customer
experience, great opportunities for team members and by leaving positive impact over
communities.
Vision- To provide the warmth hospitality by delivering exceptional experience.
Marketing objectives- This entity has specific objective and they undertake daily operation
activities in order to accomplish set goals (Widardi, Indradewa and Pusaka, 2020). Also, the
objectives are outlined as follows-:
To establish the effectiveness of marketing strategies that currently uses by hotel
Marriott.
To develop plan of action for Marriott hotels, that aligns with internal and external
environment and also ensure effective link with customers.
To attract, convince and attract customer with use of digital platform by creating
awareness of product and services.
SWOT
Strengths – the hotel is having number of hotels across different countries and is having a high
brand image. Its presence is in 122 countries.
It provides high quality and luxury services to its customers. moreover, the hotel operational
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philosophy is based on innovation.
Weakness – there has been a lot of controversies in which hotel is engaged. So, it has related a
negative impact on its brand image.
The hotel is highly involved in family values so it is unwilling to change.
Opportunity – Marriott can focus on international travel and provide transportation services to
customers. it will help in gaining competitive advantage.
They can focus on customers personalisation and attract them by charging premium amount for
their services.
Threats – a high competition from other hotels such as Holiday Inn, Hilton, etc.
Vulnerability to terrorist attacks can be a high threat for hotel.
Digital marketing goals
To generate 10% rise in website
To increase 8% footfall of people on website landing page
To increase 15% conversion rate of customers.
Marketing strategy
Here, STP is done to determine the target audience for this plan.
Segmentation- it refers to segmenting population on basis of demographic, geographic, etc.
factors. for this the company will do segmentation on basis of demographic. Here, on basis of
income level people is segmented.
Targeting – in this the target people are identified after segmentation. Thus, high income level
people are targeted (Widardi, Indradewa and Pusaka, 2020). Therefore, this entity put their
consideration over the business and leisure travellers who comes from different part of the
world. In addition to this, target market has been segmented on the basis of class of customers
and type of journey.
Positioning – it refers to positioning the product or service in the market. hence, the marketing
will be done on social media platforms, website, etc.
Content strategy
Key word search – It involves using of proper keywords through which SEO positioning is
done. It enables in finding out website on various search engines. Here, Marriott will use
keywords such as luxury, premium, etc. to make it easy for people to search. Moreover,
marketing will be done on Google, Firefox, etc.
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Content calendar – In this a schedule is developed through which digital marketing is done.
Social posting – Here, promotion is done on social media platforms and other websites. Thus,
the hotel will do marketing on Facebook, Instagram, You Tube, etc. for this different hashtags
will be used such as # luxury, # premium, etc. furthermore, on social sites links will be also be
included in it.
Digital strategies and tactics
The digital marketing plan will include several strategies and tactics. Here, paid media
advertising, PPC, SEO, etc. will be used to target customers and achieve goals and objectives.
Moreover, e mail and web optimisation tactics will also be used in order to increase traffic on
website and conversion rate.
The 4Ps
Marketing mix involves of those components that has ability to offer the ultimate satisfaction to
customers. This aids to bring together the available tools of business that aids to achieve set
goals of business. These are outlined in below contexted manner as-:
Product- It is termed out as fundamental aspect of developing an effective marketing
strategy that aids to meet out the needs of desired customers. In order to attract
customers, Marriott is taking initiatives to offer luxury services and provide effective
range of packages to holiday seekers with additional features as free dinner combo, one
night stay free etc. This will help to gain large market share as this attracts lot of
customers.
Price- The chosen entity provides the services to the customer at the affordable price.
Marriott renders the services in three categories and superior, premium and selected. In
order to retain the reputation with high quality services the entity is formulating better
strategies that leads to widen the market share. However, chosen entity selects price
skimming strategy (Widardi, Indradewa and Pusaka, 2020).
Promotion- This is defined as communication tool that informs target audience of the
business by aware them about product and services. Henceforth, strategies of
promotion inclusive of advertisement, publicity, giving coupons etc. Therefore, Marriott
uses the digital tools such as Facebook, Twitter etc. to promote their services and also
provide online facilities that creates ease for customer to know about products and
offerings.
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