Hospitality Marketing Report: Hilton Hotel Business Analysis

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This report provides a comprehensive analysis of Hilton Hotel's marketing strategies, focusing on its business and marketing objectives, marketing mix elements, and marketing plan. The report delves into Hilton's goals, including promoting the industry, providing quality services, and enhancing customer satisfaction. It examines the 7Ps of the marketing mix—product, price, place, promotion, physical evidence, people, and process—and how Hilton utilizes them to achieve its objectives. Furthermore, the report includes SWOT and PESTLE analyses to assess Hilton's internal strengths and weaknesses, as well as external opportunities and threats. It also outlines the promotional, pricing, and digitalization strategies employed by Hilton to gain a competitive advantage. Finally, the report compares Hilton's marketing mix with that of Lasan Restaurant, highlighting differences in product, price, place, and promotion strategies to provide a broader perspective on hospitality marketing.
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Hospitality Marketing Essentials
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Table of Contents
INTRODUCTION...........................................................................................................................1
ACTIVITY 1 ...................................................................................................................................1
ACTIVITY 2....................................................................................................................................1
1. Business and marketing objectives .........................................................................................1
2. Elements of marketing mix......................................................................................................2
3. Achievement of marketing objectives through marketing plan...............................................3
4. Comparison of two hospitality companies...............................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9
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INTRODUCTION
Marketing refers to the approach that emphasize on selling and buying of goods and
services into the marketplace. There are different combination of factors that affect business
operation such as product, price, place and promotion (Kotler, Kartajaya and Setiawan, 2019).
Present report will be based upon Hilton hotel & resorts. It is a global brand that provide
different hospitality services to its customers. It was founded by Conrad Hilton in 1919 and its
headquarter is located at McLean, Virginia, U.S.
Report mainly emphasized on roles and responsibilities of marketing function. It also
includes business and marketing objective of the company and different elements of marketing
mix. Furthermore, it will include marketing plan and comparison between different
organization's marketing mix and tactics.
ACTIVITY 1
Covered in PPT
ACTIVITY 2
1. Business and marketing objectives
Hilton hotel is the global brand that provide leisure services to its customers. Business
objective of every business is to earn maximum profit in the future. Every business is having its
strategic and clear goals that have to be attain by any business. By using proper utilization of
resources objectives can be achieved effectively and efficiently.
Business objectives of Hilton Hotel are as follows:
To promote industry and to provide various aspects that help in gaining lawful rights for
members of the company.
To provide uniformity in the rules and regulations under hospitality business.
Providing economic benefit to its customers by using sustainable use of resources in the
company.
Its main aim is to provide quality product and best customer services that help in
satisfying its needs and wants.
Providing better services to customers that help in attracting more customers towards it
for increasing productivity and profit for the future.
To provide standard services to customers that will be helpful in providing different
perspective to them.
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Marketing objectives are those strategic goals that have been achieved by the company
and help in gaining various perspective for the future growth. There are different techniques that
will help in enhancing brand image and advertising products and services in the marketplace.
Hilton hotel mainly focus on SMART objectives that help in achieving business goal for the
future course of action. By the help of different promotional activities, Hilton hotels & resorts
are creating brand image and gaining competitive advantage in the market. These are made for
achieving overall organizational objectives (Grabeel and et.al., 2019). For the purpose of creating
brand image in the market, it is important for the company to offer differentiate services.
Therefore, it is necessary in providing various aspect for the future course of action. So in short,
Hotel Hilton's marketing objectives are as follows -
Enhancing the brand image of the company
Improvement in customers satisfaction
Achievement of sales target by the end of the year 2019 by 5% in order to gain
competitive advantage
2. Elements of marketing mix
Marketing mix refers to the approach that consist of combination of different factors that
help in influencing business operations. It helps in creating right strategy that help in
implementation of effective tactics into business.
Product:- This include services that is being provided by Hilton hotel & resorts such as
accommodation, food, room services, security, guests etc. This help in satisfying needs and
demands of customers. It is providing three levels of products such as core, facilitating and
supporting products. Core products are basic product as for Hilton hotel & resorts hotel room are
the product. On the other hand, facilitating products include customer services, restaurants etc.
Supporting include 24/7 services, free newspaper etc. that is provided by Hilton hotel & resorts.
Place:- It refers to the place where operational activity of business take place. It is providing
online services to consumers that help in providing comfort to consumers. As they are providing
different perspective that is related to convenience of people (Siguaw and Simpson, 2015).
Price:- This is the most important aspect that will be taken into consideration while introducing
new product into the market. Penetration pricing strategy is adopted by Hilton hotel & resorts
that provide quality product and services in low prices for gaining larger market share. This will
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help in building various perspective for the future. Through this different market can be targeted
based on price that help in providing different perspective to consumers.
Promotion:- In this information regarding product and services is being provided to customers
by offering them different product and services by Hilton hotel & resorts. For the purpose of
maintaining brand image and good quality product, direct marketing, personal selling through
this it will improve productivity and profitability in business. Thus, Company is using online as
well as offline marketing strategies.
Physical Evidence:- Hilton hotel & resorts provide different services to its customers. It is
launching an application with the launch of ferox mobile application, it has been able to cater its
international needs. Office or business place is considered as touch point from where customers
can meet employees face to face and providing various aspect in the future.
People:- These are people that are involved for introducing new product into the marketplace.
There are different people such as manager, receptionist, staff and cleaners that are providing
services to customers. It is important for them to have proper knowledge, information regarding
product and services that help in satisfying needs and wants of consumers (McDONALD, 2016).
Process:- By adopting proper documentation and providing different services to consumer that
help in determining needs and wants. It is important for marketing officer of Hilton hotel &
resorts to identify needs and demand of consumers.
3. Achievement of marketing objectives through marketing plan
For the achievement of marketing objectives, company will use various strategies &
tactics and various environmental analysis. Various environmental analysis will help company to
understand the negative and positive impact of external and internal factors on the business
activities which are carried for the purpose of achievement of the goals and objectives. It
involves Swot Analysis and Pestle Analysis of the company. There are various tactics and
strategies which is being adopted by the company for the purpose of targeting particular audience
and accordingly attracting them towards hospitality services provided by the company itself
(Perreault, 2018).
Swot Analysis Of Hilton Hotel
Strengths Weaknesses
Its customers are highly satisfied with
the company's hospitality services.
Company is not much focus on the
promotion of their business.
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Company's manpower is strong. Their
employees are trained, skilled and
talented.
Company's turnover ratio is high and
has to spend a lot on the training &
development of the employees.
Opportunities Threats
Expansion of business into new market
will be beneficial for the company as its
brand image is strong in the global
market.
Company should focus on the research
& development investment.
Change in legislation in different
countries will affect the business and its
investment in the market (Haider and
et.al., 2019).
There are various hotels which enter
into global market and increase their
brand image.
Pestle Analysis of Hilton Hotel
Factors of Pestle Analysis Their impact on hotel
Political Factor Due to change in political conditions of the
countries in which Hilton Hotel is working,
can affect the business policies and activities.
For example – change in taxation will affect
the profitability which will impact the business
activities.
Economic Factor Due to Strong GDP in emerging and
developing markets, Company has the
opportunity to grow its business by entering
into this market.
Socio-Cultural Factor Due to improvement in per capita income,
Customers are preferring to travel and stay in
the hotel. This also can be an opportunity for
the Hilton hotel to attract those customers
(Aslam, 2018).
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Technological Factor Due to digitalization, Company can provide
various hospitality services online which can
attract the customers. It can be opportunity for
the hotel to grow more.
Legal Factor Due to change in various laws and legislations
related to the hospitality industry and units,
Hilton hotel also make changes in their laws,
rules, guidelines and policies which affect the
business activities.
Environmental Factor There are various waste management strategies
through which company can optimum use of
resources and enhance their profitability.
Strategies and Tactics adopted by Hilton Hotel
There are various strategies and tactics through which company can grab the
opportunities and reduce the impact of threats on the business. Along with that, these strategies
will help company to promote their brand as well as achievement of the marketing objectives
(Dib, 2018). These strategies and tactics are as follows -
Promotional Strategies – For the increment in sales and attraction of various customers from
different countries, Company will focus on the promotion of their brand. For the promotion,
Hilton Hotel will focus on both traditional and non-traditional marketing tools.
Pricing Strategies – For the successful expansion of business into emerging and developing
countries, Company will focus on its pricing strategies. In these market, Company can charge
competitive pricing and penetration pricing from their customers.
Digitalization Strategies – For the successfully attraction of customers towards business, Hilton
Hotel can use various digital technological devices. Through these devices such as smart
remotes, recognition sensor devices and mobile application etc, Company can easily identify the
needs of their customers. This will lead them to easily satisfied their needs.
Funding Strategies – Company can make various reserves for the purpose of saving surplus
money in order to avoid the loss or expenses which will happen due to change in legislations or
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political conditions. This will help company not to suffer from any kinds of financial losses or
crisis.
Waste management – There are various strategies and tactics such as lean production, six sigma,
just-in-time method, total quality management, just-in-case and queueing theory etc. By these
methods and strategies, company can reduce its wastes, decrease in costs and enhance its profit.
Employee Relationship – There are various tactics and strategies through which company can
make employees feel that they are important part of the organisation and strengthen the
relationship with employees. These strategies are such as – involvement in decision making &
planning process, make communication open & informal, organization of various cultural &
occasional events and take feedback from them in regarding company etc. (Nykiel, 2016).
4. Comparison of two hospitality companies
Comparison between two companies in the context of Marketing Mix
Elements of Marketing Mix Hilton Hotel Lasan Restaurant
Product (Service) Hilton hotel provides varieties
of hospitality services such as
food & beverage service,
accommodation service, prior
reservation or booking service,
wedding & banquet service
and special event service etc.
Lasan Restaurant provides
only food & beverage service.
Price Pricing strategy of Hilton hotel
is Premium pricing in which
the quality of services are high
as well as the prices are also
high.
Pricing strategy of Lasan
Restaurant is Penetration
pricing in which the quality of
service is high but the pricing
of services are reasonable.
Place Hilton Hotel is serving its
services in all over the world.
Lasan Restaurant is serving its
services in only England.
Promotion Hilton Hotel is using offline
and online promotional tools
and strategies for the purpose
Lasan Restaurant is using only
digital marketing strategy for
the purpose of attracting
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of achieving its organisational
as well as marketing
objectives.
customers and inform about
the offers & discount etc. to
the customers (Kotler and
et.al., 2015).
Comparison between two companies in the context of Tactics
Tactics Hilton Hotel Lasan Restaurant
Social Media Tactics Hotel Hilton uses social media
tactics for the purpose of
communicating with
customers. In these tactics,
company posts with happy
customers & tag them in their
posts. They also post about the
food items, sometimes do
share recipes and inform their
customers about the offers &
discounts etc.
Lasan Restaurant uses social
media tactics for the purpose
of informing about the clients
about the offers, discounts etc.
They mainly use it for the
promotion of their restaurant.
Membership Offers Hotel Hilton uses membership
offers for the purpose of
making their customers loyal
towards the company. For that
they do email to their
customers about it. They do
mobile and social media
marketing to make their
customers about the
membership offers.
Lasan Restaurant doesn't use
membership offer tactics.
Monitoring and Evaluation
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For the monitoring and evaluation, Hilton Hotel use Sale Analysis method. Under this
method, company collect the sales data, analysis of the data and prepare the report. For the
analysis of the sales data, Company uses various metrics such as sales force and period
comparison. On the basis of the above metrics, Company sees that their sales volume increases
or decreases. Like that company do analysis of their marketing strategies and tactics by using
sales analysis methods (Grabeel and et.al., 2019).
CONCLUSION
From the above study, it has been summarized that marketing functions is an important
concept in marketing. These functions helps organisation to gain marketing objectives. These
functions help company to easily identify their marketing elements and accordingly prepare the
marketing plan. Marketing plan is a document which is prepared by the marketer of the
organisation for the purpose of getting to know about the strategies and tactics being used by the
organisation in order to achieve the organisational as well as marketing objectives.
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REFERENCES
Books and Journals
Aslam, M., 2018. Marketing strategies for academic libraries in the 21st century. International
Research: Journal of Library and Information Science. 8(1).
Dib, A., 2018. The 1-page marketing plan. Page Two Books.
Grabeel, K.L. and et.al., 2019. How One Library's Health Information Center Expanded Its
Marketing Plan. Medical reference services quarterly. 38(3). pp.218-227.
Haider, A.A. and et.al., 2019. Marketing Management.
Kotler, P. and et.al., 2015. Marketing. Pearson Higher Education AU.
Kotler, P., Kartajaya, H. and Setiawan, I., 2019. Marketing 3.0: From Products to Customers to
the Human Spirit. In Marketing Wisdom (pp. 139-156). Springer, Singapore.
McDONALD, M.A.L.C.O.L.M., 2016. Strategic marketing planning: theory and practice. In The
marketing book (pp. 108-142). Routledge.
Nykiel, R.A., 2016. Marketing Your Business-A Guide to Developing a Strategic Marketing
Plan.
Perreault, W.D., 2018. Essentials of marketing. New York: Mc Graw Hill.
Siguaw, J.A. and Simpson, P.M., 2015. A marketing plan for marketing instruction: A satirical
look at student comments. In Creating and Delivering Value in Marketing (pp. 129-
133). Springer, Cham.
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