Marketing Strategy Report: Hilton International Asia Pacific Pte Ltd

This report provides a comprehensive marketing strategy analysis of Hilton International Asia Pacific Pte Ltd. It begins with an executive summary and introduction, followed by a detailed competitor analysis of Marriott, Mandarin Oriental, and Hyatt, highlighting their strengths and competitive strategies. The report then delves into the dominant economic features, including market size, growth rate, and the industry's life-cycle stage. It explores the importance of economies of scale in purchasing, advertising, and distribution, and examines various industry segments like food and beverages and travel and tourism, and their impact on firm strategies, competition, and profitability. The external environment is assessed using PESTLE analysis, addressing legal, economic, social, technological, environmental, and political factors. Porter's Five Forces model is applied to evaluate the competitive landscape. Finally, the report identifies key success factors (KSFs) and concludes with an overview of the company's strategic position and recommendations for future growth. The report emphasizes the importance of service differentiation, digital hospitality, guest experience, and loyalty programs in achieving a competitive advantage in the hotel industry.

Marketing strategy

Marketing strategy
Executive summary
Hotel industry is considered as one of the important sector through which it can be easy
for the customers to satisfy their wants. It is a sector that can help the business in accomplishing
the set targets. So, for this paper the company which is selected is Hilton International Asia
Pacific Pte Ltd. Also, the focus is given on the various factors related to Pestle and Porter five
force models. Hilton International Asia Pacific Pte Ltd is considered as one of the famous
company in the competitive market.
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Marketing strategy
Table of Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................1
Competitor’s analysis......................................................................................................................1
Dominant economic features...........................................................................................................3
Market size...................................................................................................................................3
Growth rate and life-cycle stage of industry................................................................................3
Importance of economies of scale in the purchasing, advertising and distribution.....................5
Industry segments and effects on firms, strategies, competition and profitability......................6
Market Space (External Environment)............................................................................................6
Pestle analysis..............................................................................................................................6
Porter five force model................................................................................................................7
KSFs (Competitive Success)...........................................................................................................8
Conclusion.......................................................................................................................................8
References........................................................................................................................................9
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Marketing strategy
Introduction
Hilton International Asia Pacific Pte Ltd was established in 1998. It is one of the largest
companies in the hotel industry. The company is based in Singapore and the company focuses
on enhancing the overall market share in the competitive market. The aim of the company is to
attract more customers towards the services offered by the Hotel. In this paper the focus will be
given on the overall analysis of the company in the competitive market. Pestle analysis,
competitor analysis and also external factors will be taken into consideration which will help to
evaluate the overall factors prevailing in the market.
Competitor’s analysis
In context to the competitor analysis, it can be analyzed that scope of the industry is wide.
The company can easily focus on market expansion just because of the goodwill in the
competitive market.
The three competitors prevailing in the market are Marriott, Mandarin Oriental and Hyatt.
One of the competitors is Marriott in the market and it can be seen that the company offers
advantages of having good balance sheet and also good industry leadership. It can be seen that
the main focus of the company is on innovation. The process of company mainly emphasizes on
the commitment and innovation which can also maintain the total value for money (Nieves &
Diaz-Meneses, 2016).
Mandarin oriental is one of the hotels which are situated in more than 27 countries. The
company gives tough competition in the market as the focus is on creating unique design and
strong presence on the global platform.
The third competitor is Hyatt in which it can be evaluated that there are 36000 workers
who assist the company to reach the top hospitality brand on the global platform. The company
manages its activities in various formats related with hotels, resorts, ownership and also
residences. The main focus of the company is on technology which should be upgraded from
time to time so that growth can be attained. It has been seen that these are the companies which
can be the substitutes of the company. The competition level is high in the market as there are
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Marketing strategy
many substitutes in the market available for the customers at low price. These companies can
also be considered threat for the company in the market. It is important for the company the
overall level of competition as it can help in achieving goals (Bhasin, 2018).
But it can be seen that services which are offered by the company are highly different as
they emphasize on enhancing the customer satisfaction in the competitive market. The
competitive business strategy considered by the company is related to service differentiation.
The company has differentiated its services on the basis of quality and it also maintains the high
level standards at the time of offering services to the customers. The competition strategy which
is considered by the company is related to digital hospitality. The company emphasizes on
digitalization efforts concerned with the booking channels and also mobile services. The proper
integration of the digitalization points generates additional synergetic affect for the organization.
Guest experience and privacy is also one of the important strategies which are considered by the
company and it has been seen that through this it can be easy for the company to attain the
competitive advantage. Through this the competition level prevailing in the market can be
minimized. Also, it can help the company to attain the large market share in the highly
competitive market (Dudovskiy ,2016).
The next competitive strategy pursuit by the company is related with loyalty and data
drive personalization which can help to enhance the overall market share of the company and
also it can assist in achieving the goodwill in the market (Dudovskiy ,2016).
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Marketing strategy
Source: Dudovskiy, 2016
At the time of positioning, the company emphasizes on proper international strategy
through which the company has to commit to emphasize on substantial financial investments on
the continuous basis. The main aim of the company is to emphasize on international expansion as
it can help the company to attain the large market share in the competitive market (Yang, 2015).
Dominant economic features
Market size
The economic features related to the company are concerned with the market share in
which it has been seen that the market share is large of the company. The company has 4275
hotels on which can be considered as the large market share of the company on the global
platform (Tracey, 2015).
Growth rate and life-cycle stage of industry
In the life cycle stage of the industry and also the overall growth rate it has been seen that
there are various aspects which are taken into consideration.
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Marketing strategy
The first factor in relation to the life cycle stage of the hotel industry is related with
introduction stage. In this it can be seen that hotel industry focuses on advertising the services in
the competitive market. In this the company emphasizes on providing various services related to
the type of rooms like simple rooms, suites, apartments and bungalows (Wang, Madhok & Xiao
Li, 2014). On this stage the hotel does not have any sales point but to introduce the service in the
market enhances. Also, the hotel will not be able to generate the revenue to cover the overall cost
of development related to labor cost and building taxes. On this stage the hotel is ready to accept
the guests to offer the services. So, the company is not on this as it was established many years
ago and also the customers are well known about the services which are given in the competitive
market (Arikan & Stulz, 2016).
The next step is related with growth stage in which it has been seen that the hotels
emphasize on the new packages on the holiday program and also it begins to advertise the
services in the market. In context to the company, it has been seen that company offers various
services in the market and also the low cost strategy is used which enhances the overall market
share of the company. The hotels on this stage also focus on investing into the market share
which can be less costly. In this stage, the company focuses on promotion of the services as it
can help to attain the large market share in the competitive market. The company focuses on
giving advertisement so that the market share can be attained and also the people can know about
the services which are offered to them in the market (Nagle & Müller, 2017).
Maturity is the stage in which the services offered by the company are fully developed
and also they have a good market share. But on this stage sometimes the sales also reduces and
the growth is also paused. Also, this can take place as the products of the hotels are managed and
also accepted by the targeted market. The overall level of profit of the company also reduces as
there are more resources which are needs for marketing and advertisement as it can help to
secure the overall level of competition of the products in the market. So, the company is
focusing on advertisements which can help to attain the large market share and can also increase
the profits of the company (Tavassoli, 2015).
Decline is also the step in the life cycle of the industry. On this stage it can be seen that
life cycle of the services declines and also the overall sales reduces of the company in the
competitive market. In the hotel industry, the example can be related to the product which will
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Marketing strategy
be hotel and also it has lost the attractiveness towards the guests. At this stage the company
emphasizes on managing the product with care. This is not the stage which is favorable by the
company in the competitive market. It has been seen that the company is not on this platform as
the company focuses on the maintaining the overall activities of the company. It has been seen
that the company emphasizes on promoting the services so that it can be easy to attain the large
market share in the competitive market (Arikan & Stulz, 2016).
Source: Diversifying market, 2014
Importance of economies of scale in the purchasing, advertising and distribution
It has can be stated that economies of scale has an important role in marketing and
advertising. Without this it is not possible to achieve growth in the competitive market. The
company focuses on advertising and marketing budget over a large output and also buys the
inputs in bulk on the negotiated discounted rates if there is proper negotiation power in the
overall market. The company focuses on giving discounts to the customers so that it can be easy
to achieve the large market share in the competitive market (Hilton & Begel, 2018).
In the large economies of scale it can be seen that large manufacturer can employ the
specialists so that proper supervision can take place in the production system and also it helps to
manage the overall marketing system. In reference to the overall production process, the
company emphasizes on bulk orders as it can help to maintain the goodwill in the competitive
market. The company also emphasizes on the overall purchasing, advertising and distribution
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Marketing strategy
process by considering the overall economy. By giving emphasis on these factors it can be easy
to attain the large market share and it will also maintain the overall goodwill of the company in
the competitive market (Akbar & Tracogna, 2018).
Industry segments and effects on firms, strategies, competition and profitability
It can be stated that in the hotel industry there are various segments which are related to
it. It can be seen that food and beverages is one of the important segment which is taken into
consideration by the company as it can impact the overall strategies and competition level. It is
stated that if proper food and beverages sector is not there in this industry, then it can negatively
impact the overall operations of the company. The customers will not be satisfied and the
competitors who are present in the market can take the advantage. Due to this, it can be seen that
affect can be on the overall profits of the company. The company will not be able to attain more
profits in the competitive market which can affect the goodwill also which is prevailing in the
market.
The next segment is related with travel and tourism. It can be seen that if hotel industry
does not provide good services related to travel and tourism then customers will be least
interested in the overall operations of the company. It is necessary for the company to focus on
the segment related to travel and tourism as it can help to compete in the highly competitive
market (Gajjar & Okumus, 2018).
Market Space (External Environment)
Pestle analysis
Legal factor
This factor can be considered as threat to the company. It can be seen that there are
various legal aspects which are necessary for the company to emphasize on. If proper legal
framework is not considered then it can be difficult to achieve success. In Singapore, the
company has to follow the hotel Act in which there are various sub categories related to hotels
licensing board and related with registration of premises as the hotel. If this framework in
Singapore is not followed then it can negatively impact the overall operations of the company
(Strickland, 2017).
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Marketing strategy
Socio cultural factor
This can be the opportunity for the company as it is important to focus on the needs of the
customers so that it can be easy to enhance the satisfaction level of the customers. If the services
offered by the company are according to the demand and preference of the customers then it can
help in accomplishing goals and objectives. It is necessary for the company to focus on the
demand so that it can be easy to manage the overall activities.
Political factor
This is also one of the threats to the company as it can be seen that change in the policies
can impact the overall operations. In Singapore the factors that can affect the overall growth of
the company is related to corruption and instable government which can hinder the
organizational activities and also growth in the market (Viglia, Mauri & Carricano, 2016).
Porter five force model
Competition level – High
This factor can also be considered as the threat as the competition level is high in the
market. There are many competitors present in the market. The competitors which are present in
the market are Ritz Carlton and Hyatt. So, to reduce the competition level it is important for the
company to focus on maintaining the industry segment related to travel and tourism and food and
Beverages (Cusumano, Kahl & Suarez, 2015).
Power of the customers – High
It can also be high and it is one of the opportunities for the company. In this it can be
seen that the buyers or the customers will be the teenagers who love travelling. So, it can be
high, so it is important to maintain as it can help in accomplishing the desired goals and
objectives.
Bargaining power of suppliers – High
It can be seen that bargaining power of suppliers is high. The company has the
opportunity to enhance the market share which can lead to the overall growth in the market. It is
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Marketing strategy
one of the opportunities which should be considered by the company as it can help in
maintaining the goodwill in the market (Pakes, 2017).
KSFs (Competitive Success)
The key success factors for the company are many. It can be stated the issues can be
related with lack of training and development, proper human resource management and also
good quality food. These factors can easily influence the overall success and profitability of the
company. The key success factors are not constant if focus is given on the overall segments of
the company. It is necessary to manage the activities as it can help in accomplishing goals and
objectives. Also the KPF can vary in the overall process of life cycle. Without this it cannot be
possible to remain on the growth stage as it is one of the platform through which profits can be
earned (Grant, 2016).
SWOT analysis
Strength
The strength of the company is related with the good image in the market. It can be seen
that due to the good image in the market the company is able to achieve large market share in the
competitive market.
Threat
One of the threats is related with the high competition level prevailing in the market. It
can be seen that the competitors in the market are Mandarin oriental and Hyatt. The next threat is
also related with terrorism and political unrest and the last threat is change in the taxes and
regulations.
Opportunities
There are many opportunities which exist in the market. It can be seen that the company
has various innovative ideas to maintain the quality and to enhance the satisfaction level. So, it is
necessary to focus on maintaining the quality of the services so that it can be simple to achieve
success. The next opportunity focuses on the change in the climate and the last is higher demand
on the quality.
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Marketing strategy
Weakness
It has been seen that there is high dependency on the tourists. If tourists are not there then
it can be difficult to achieve the desired targets. It can also been seen that the manpower is
important which is not sufficient in the company. So, it is necessary to focus on managing
overall manpower as it can help in accomplishing goals and objectives in the market.
Conclusion
So, it has been concluded that company should focus on the overall activities as it can
help in achieving the desired goals and objectives in the competitive market. It will also help to
maintain the relation with the competitors prevailing in the market.
References
Akbar, Y. H., & Tracogna, A. (2018). The sharing economy and the future of the hotel industry:
Transaction cost theory and platform economics. International Journal of Hospitality
Management, 71(8), 91-101.
Arikan, A. M., & Stulz, R. M. (2016). Corporate acquisitions, diversification, and the firm's life
cycle. The Journal of Finance, 71(1), 139-194.
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Bhasin., H. (2018). Top Hilton Competitors across the world. Retrieved from :
Cusumano, M. A., Kahl, S. J., & Suarez, F. F. (2015). Services, industry evolution, and the
competitive strategies of product firms. Strategic management journal, 36(4), 559-575.
Diversifying market. (2014). Product life cycle. Retrieved from :
Dudovskiy., J. (2016). Hilton Hotels Business Strategy and Competitive Advantage. Retrieved
from : https://research-methodology.net/hilton-hotels-business-strategy-and-competitive-
advantage/
Gajjar, T., & Okumus, F. (2018). Diversity management: What are the leading hospitality and
tourism companies reporting?. Journal of Hospitality Marketing & Management, 1-21.
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley &
Sons.
Hilton, M., & Begel, A. (2018, May). A study of the organizational dynamics of software teams.
In Proceedings of the 40th International Conference on Software Engineering: Software
Engineering in Practice (pp. 191-200). ACM.
Nagle, T. T., & Müller, G. (2017). The strategy and tactics of pricing: A guide to growing more
profitably. Routledge.
Nieves, J., & Diaz-Meneses, G. (2016). Antecedents and outcomes of marketing innovation: An
empirical analysis in the hotel industry. International Journal of Contemporary
Hospitality Management, 28(8), 1554-1576.
Nieves, J., & Segarra-Ciprés, M. (2015). Management innovation in the hotel industry. Tourism
Management, 46(6), 51-58.
Pakes, A. (2017). Empirical tools and competition analysis: Past progress and current
problems. International Journal of Industrial Organization, 539(6), 241-266.
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Strickland, P. (2017). The first space hotel employees: Human resources challenges in a post-
terrestrial paradigm. Journal of Human Resources in Hospitality & Tourism, 16(4), 445-
458.
Tavassoli, S. (2015). Innovation determinants over industry life cycle. Technological
Forecasting and Social Change, 91(8), 18-32.
Tracey, J. B. (2015). Hospitality HR and Big Data: Highlights from the 2015 Roundtable.
Viglia, G., Mauri, A., & Carricano, M. (2016). The exploration of hotel reference prices under
dynamic pricing scenarios and different forms of competition. International Journal of
Hospitality Management, 52(8), 46-55.
Wang, L., Madhok, A., & Xiao Li, S. (2014). Agglomeration and clustering over the industry life
cycle: Toward a dynamic model of geographic concentration. Strategic Management
Journal, 35(7), 995-1012.
Yang, J. T. (2015). Effect of internal marketing on knowledge sharing and organisational
effectiveness in the hotel industry. Total Quality Management & Business
Excellence, 26(1-2), 76-92.
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