Analyzing Hilton Hotel's Marketing Mix, Customer Loyalty, & Strategies

This report reflects on the marketing mix employed by Hilton Hotel, focusing on product, price, place, and promotion. The analysis emphasizes the hotel's adherence to management principles and its understanding of customer needs through market research. It evaluates the effectiveness of the hotel's pricing strategy, distribution channels, and promotional activities in enhancing brand recognition and customer loyalty. The report also assesses the hotel's equity in its loyal customer base, identifying reasons for customer loyalty such as constant product promotion and after-sales services. Furthermore, it provides recommendations for addressing low customer loyalty scenarios, including the provision of credit facilities and selling shares to the public to foster a sense of ownership and allegiance. The report concludes by advocating for a flexible production method, expansion of the product mix, and adoption of an intensive distribution strategy to tap into the middle-income market segment.

Question 2
Having worked at Hilton hotel, back in 2015, I would like to give the following reflection based on
the marketing mix used by the management.
Firstly, the management has employed strict adherence to the principles of management to ensure
that the organization is scalable from its inception to-date. The management was aware of the significant
profit margins which are normally associated with proper management strategy hence designed the most
relevant style of management.
Components of the marketing mix used by Hilton
1. The product
This is any item that is offered to the market to satisfy human want. A product can be either a
tangible item or an intangible item. The organization conducts a robust market research to ascertain what is
actually trending for its customers. The marketing department ensures information about the life cycle of
products is so that the specific features are included in the product development phase.
2. The price
This is the amount of money that a seller is willing to exchange his product for. Similarly, it is the
amount of money that a potential client is willing and able to spend to enjoy a commodity. Since the
organization is well established, the management sets prices that are within the reach of established
customers. This is done based on the belief that price normally depict the quality of the products.
3. The place
One of the simplest methods of increasing the utility of a product is to distribute and position it in
the most ideal place where its demand is highest. The organization uses an exclusive distribution strategy to

offer its products to individuals who are able to reach their premises that are placed strategically within the
central business district of Nairobi-the capital city of Kenya.
4. Product promotion
Organizations promote their products to enhance brand recognition and boost customer loyalty.
Hilton did very well to advertise its commodities and services through the mainstream media. In addition, it
created a public relations department to further build rapport with the clients.
Recommendation
The hotel should establish a flexible le production method that allows for inclusion of the right
product mix to cater for the potential clients who always seek new items. Secondly, i would advise the
management to invest in the expansion of the current product mix by diversifying the scale of production.
This will enable the organization to stimulate more demand hence increase its rate of return on capital.
Thirdly, I would not complete this reflection without advising the management of Hilton Hotel to adopt an
intensive distribution strategy to tap on the existing market potential of the market of the middle-income
class who are always the driving force of the economy. In this, the prices will be made lucrative for the
individuals who are earning little salaries hence improving the returns for the organization.
Equity of a loyal customer base evaluation
Hilton has a brand name that has been built over years. Clients who have been served in the hotel
have spoken volumes of quality products and wide arrays of services. The management regards reputation
of the organization as a special asset.
Reasons why customers become loyal to Hilton hotel
Firstly, the organization constantly promotes their products to ensure that customers are engaged at
all the times. Secondly, it offers after sale services to clients who are served in the organization. Once the

institution serves the clients, they retain the contacts of the clients and communicate with them on a regular
basis to get feedback on areas to be adjusted.
Recommendation for low customer loyalty scenarios
The following are some of the actions to be taken in occasions where the organization is suffering
from incidences of low customer loyalty:
Provision of credit facilities; the organization should design credit cards and provide them to
potential clients based on their abilities to service. The clients to obtain the services from the organization
even when they do not have liquid cash will use these cards. This will make the rich identify with the hotel
hence becoming loyal to it. Sell some of their shares to the public; some people see the hotel as safe haven
for the rich. Therefore, if the directors let go some of the shares to be sold through an initial public offer,
they will be bought by locals who will shift their allegiance to the hotel without waiting for anybody to
persuade them.