Comprehensive Marketing Report: Hilton Hotel UK's Strategies

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This report offers a comprehensive analysis of the marketing strategies employed by Hilton Hotel UK. It begins with an overview of the company, its mission, vision, and values, followed by an examination of the marketing environment, including SWOT analysis, micro and macro environmental factors, and consumer markets. The report delves into factors influencing consumer behavior and the customer decision-making process, along with marketing segmentation and the marketing mix. It further explores pricing strategies and the implementation of the marketing plan. The report concludes with a summary of key findings and recommendations, providing valuable insights into Hilton's marketing approach within the hospitality industry.
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Running Head: Hospitality - Marketing in Hospitality
Hospitality - Marketing in Hospitality
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Hospitality - Marketing in Hospitality 1
Contents
Introduction......................................................................................................................................3
Overview of the company............................................................................................................4
Marketing concept...........................................................................................................................4
Goals and objective..........................................................................................................................5
Objective......................................................................................................................................5
Vision and mission......................................................................................................................5
Values..........................................................................................................................................6
Marketing environment...................................................................................................................6
SWOT analysis............................................................................................................................6
Microenvironment.......................................................................................................................7
Macro Environment.....................................................................................................................9
Consumer markets.........................................................................................................................11
Factors affecting the consumer behavior...................................................................................11
Customer decision-making process...........................................................................................12
Marketing Segmentation................................................................................................................13
Geographic segmentation..........................................................................................................14
Demographic segmentation.......................................................................................................14
Psychographic segmentation.....................................................................................................14
Marketing Mix...............................................................................................................................15
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Hospitality - Marketing in Hospitality 2
Pricing strategy..............................................................................................................................17
Implementation of the marketing plan...........................................................................................18
Conclusion.....................................................................................................................................21
References......................................................................................................................................22
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Hospitality - Marketing in Hospitality 3
Introduction
The report talks about the marketing concept on the hospitality industry. The hospitality industry
is a broad category of the fields that include the fast food chains, restaurants and the other food
and beverage hotels. The report is based on Hilton Hotel UK; the corporation is having leading
hospitality chains. The company currently consist of more than 3,500 hotels across the world in
more than 103 countries and territories.
The report shows the marketing environment that affects the working of the company along with
that it consists of the consumer market. It consists of the decision-making process and consumer
behavior factors. The marketing segmentation and the pricing strategy are discussed along with
marketing mix that helps the company in making right strategy.
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Overview of the company
Hilton Hotel UK is one of the largest and the fastest growing hospitality companies in the world
who is having the more than 5,100 properties with more than 838,000 rooms in approximately
103 countries and territories. This brand is a most recognized brand in the world and also
consists of Hilton Hotels and Resorts brand. In total 69 members of the company enrolled in the
award-winning customer loyalty program (Hilton, 2017). The company is having many outlets in
the UK, especially in London.
Marketing concept
The marketing concept is the philosophy that the firm makes use of to analyze the needs of their
customers and according to this requirement of the customers, the decision is taken by the
companies. According to Philip Kotler, marketing management is a managerial and social
process with the help of which the individuals or firms take what they need or want through
generating, offering, exchanging products of value with each other (Srivastava, 2011). Kolter
said that marketing concepts are the philosophies used by the Hilton organizations to guide their
marketing efforts. The author says that the core concept of the marketing includes the need, want
and demand along with products, value, cost and satisfaction (Pahwa, 2017).
Need- the need is the state of being deprived of some basic satisfaction which includes
clothing, safety, food, and shelter.
Want- Want is the desire for the specific satisfier of need.
Demand- When the want of the particular product convert into the ability and willingness
to buy the product.
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Hospitality - Marketing in Hospitality 5
Products- Product can be service or particular think that helps the company in satisfying
the need and want of the customers.
Value- the decision of the purchase of the product is depended on the value/cost
satisfaction delivered by product/offering. Value is products capacity to fulfill the needs
and wants according to the customer expectations or estimations (Srivastava, 2011).
According to AMA's the concept of marketing is the activity, set of processes for delivering,
communicating and exchanging offers that have value for the clients, customers, partners and the
society at large. AMA’s says it is a way to analyze and evaluate the customer needs and
expectations with the help of the framework. American Marketing Association defines a
marketing management as the process of executing and planning the conception of pricing,
promotion, distribution of serviced and ideas to create exchanges that satisfy individual and
organizational goals.
Goals and objective
Objective
Each and every company works with the objective, Hilton hotel also has an objective to provide
the exceptional experiences to the customers which help the company to improve the market
share. The company has an objective to expand the business across the world and to grow in the
industry of hospitality.
Vision and mission
The vision of the Hilton Hotel is to fill the earth with the light and warmth of hospitality by
delivering exceptional experiences to every guest in every hotel and every time. The mission of
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Hospitality - Marketing in Hospitality 6
the company is creating heartfelt experiences for the guests, high value for owners, an
opportunity for team members and the positive impact on communities (Hilton, 2017).
Values
Each and every company maintain some of the values similarly the values of Hilton hotel are-
H- Hospitality (company believes in delivering memorable experiences to customers)
I- Integrity (company believes in performing right activities)
L- Leadership (company believes that they are leading in community)
T- Teamwork (company believes that they are players)
O- Ownership (company is responsible for the actions and decisions)
N- Now (company believes in maintaining the discipline and urgency)
Marketing environment
The business environment is the marketing environment that includes the factors which can
affect the ability of the company to make the decision. The major marketing environment
consists of the macro and microenvironment.
SWOT analysis
Strength
The company has strong brand recognition of Hilton in the UK.
The company makes use of technical innovations to enhance the customer experiences
and constant upgrade the business processes.
The brand maintains a good brand reputation in the UK market.
Weakness
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The company maintains the limited market share despite having brand recognition.
The business operation of the Hilton gets affected due to different government policies
and the parameters (Mba Skool.com, 2017).
Opportunities
The company can make use of digitalization and the better use of technology.
The company can bring innovations in the customer services to enhance the customer
satisfaction.
The company considers London as the prime location and this is the reason its most of
the hotels are situated in London. The company has an opportunity to expand business at
different locations.
Threats
The company might face the threat from the other international brands present in the UK.
The threat of the pricing strategy can be faced by the company; the pricing strategy will
enhance the competition in the market.
Microenvironment
The microenvironment nearly factors that affect the ability of the company to serve its customers
and these factors consist of suppliers, customers, distribution channels, and the general public
(Chand, 2017).
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Hospitality - Marketing in Hospitality 8
Suppliers- The suppliers of the company can affect the reputation and the profit of the
company. Each and every company try to maintain the good and smooth relationship with
the suppliers. The Hilton UK obtain their products locally from the suppliers and this is
the reason company maintain the partnership to discover the sustainable products. This is
said by the company that their success depends on the ability of the support of the local
suppliers (UWE Hilton, 2013). The support of the suppliers can create an impact on the
company ability.
Customers- Hilton believes in offering the variety of services to its customers such as
family fun packages, wedding ceremonies, and some parties relate to the Hollywood
galas. Apart from these facilities company also provide some of the general facility to the
customers. Though customers are expecting more from the company such as tourism and
business travel purposes and this expectation of the customers affect the company while
making the decision.
Competitors- Company maintains the large scale of branding and reputation in the
market and this is the small independent firm find it difficult to compete with the Hilton.
Suppliers
Cutsomers
Competitiors
Media Public
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Hospitality - Marketing in Hospitality 9
This is the reason the threat of the new potential entrants is very low. The company offers
different facilities to the customers such as loyalty programme and redeemed rewards and
offers to the customer who visits on the frequent basis (Hollensen, 2015).
Media Publics- The website of the Hilton is the best source for accessing the information
for the public with the pictorial content and it is easy to visualize the hotels and their
rooms. It also engages the media concerning the hotels across the world like Annual
Corporate Responsibility Report. Currently, the company reduced the water consumption
by 10% which became popular in front of the media. This helps the company in
enhancing the reputation and brand name in front of the general public.
Macro Environment
The company makes use of the PESTLE tool that helps the company in analyzing the factors that
affect the Hilton UK revenue and the long-term growth objectives.
(Source: Marketing Minefield, 2017)
Political factors- The Company get affected due to political instability as in London on
7th July 2005; the UK was temporarily branded as the pace that accommodated a set of
extremist religious organizations. These risks and the threats of the terrorism in the UK
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affect the Hotel industry (UWE Hilton, 2013). There is likely decrease in the number of
visitors to London due to the terrorist attacks the UK and this creates the impact on the
Hilton performance in this market.
Economic factors- The economic factors affect Hilton hotels and resorts situated in the
UK. At the times of UK Olympics in the year 2012, the most of the hotels were fully
booked and occupied and once the Olympics game were over then the situation was
completely different. The economic crises which took place in the year 2007-2009 in the
UK set and this created a risk factor for another economic crisis. The changes in the
currency rate and the inflation rate might lead to the crises.
Social factors- The travel and tourism industry is having the highest contribution in the
UK. The total contribution of the industry in the UK was GBP 101 billion in the year
2011 or it can be 6.7% of total GDP. The company provides the services considering the
customer needs.
Technological factors- Hilton make use technology as the company offers the facility of
the online app to its customers. The customer can check the room availability and can
book and pay the amount for the rooms. The company does provide the facility of the
Wi-Fi and the updated technology device in hotels so that customer can browse the
features of the company.
Environmental factors- The hospitality industry is responsible for exploiting the
environment. Hotels are contributing to enhancing the number of carbon emissions which
leads to the issue of global warming (Dudovkisy, 2017). The company is following
regulation of decreasing the carbon footprint, inevitable increasing levels of operational
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costs of the company. The corporate responses of the company show that they have taken
the steps to reduce the population levels.
Legal factors- The Company fulfill the laws and regulation of these laws and regulations
can impact the working of the company. In the hotel industry, the company follow the
health and safety laws, minimum wage law and provide the benefits to the employees
(Della Corte, 2016).
Consumer markets
The consumer market refers to buyers who purchase the goods and services for the consumption
rather than resale. Each customer is having their preferences and the buying habits in the single
market so this is the fact that the factors which can affect the consumer's behavior of buying
products.
Factors affecting the consumer behavior
There is presence of some of the factors that can affect the consumer buying behavior and some
of these factors are discussed below:-
Cultural factors- Cultural factors are the basic factors that create the impact on the consumer
behavior. The cultural factors consist of value, perception, geographical regions, social
satisfaction or classes. London is the place where most of the hotels of the Hilton group are
present. The place is a well-known tourist where the people like to visit and whoever visits the
place will like to stay in the 5-star hotel. The consumer believes that the facility provided by the
Hilton is impressive and attractive that grabs the attention of the customers (Horner, and
Swarbrooke, 2016). Though, the services of the company are available for the high-class group
this might affect the customer preferences.
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