MKTP103: Hilton Hotel Marketing Principles Report - Analysis

This report provides a comprehensive marketing analysis of Hilton Hotel, commencing with an executive summary outlining key aspects such as a SWOT analysis, a new product suggestion, and the proposed marketing mix. The introduction sets the stage by providing an overview of the report's structure and objectives, followed by a company summary that highlights Hilton Worldwide Holdings Inc.'s position in the hospitality sector. An industry overview contextualizes the hotel's operations within the rapidly evolving global hospitality market, emphasizing market size and growth projections. The report then delves into Hilton's micro and macro environments, examining factors like suppliers, customers, competitors, and public perception, as well as demographic, economic, natural, technological, political, and cultural influences. A detailed SWOT analysis reveals the hotel's strengths, weaknesses, opportunities, and threats, followed by an exploration of market segmentation based on psychographic factors and positioning strategies. The core of the report proposes the launch of a new product: smart in-room technologies, including keyless entry, smart mirrors, and personalized entertainment systems, aiming to enhance customer experience. The marketing mix strategies for this new product are then discussed, covering product features, premium pricing, placement within hotel rooms, and promotional strategies using social media and the company website. The report concludes with recommendations for incorporating smart technologies and gathering customer feedback to improve services.

MARKETING
PRINCIPLES

Table of Contents
Executive summary..........................................................................................................................1
Introduction......................................................................................................................................1
Company summary..........................................................................................................................1
Industry overview............................................................................................................................1
The brand’s Micro and Macro Environment...................................................................................2
Micro...........................................................................................................................................2
Macro..........................................................................................................................................2
SWOT..............................................................................................................................................3
Market Segmentation.......................................................................................................................4
Positioning.......................................................................................................................................4
New product rationale for the target market....................................................................................5
Marketing Mix strategies:................................................................................................................5
Product........................................................................................................................................5
Pricing.........................................................................................................................................5
Placement....................................................................................................................................5
Promotion mix.............................................................................................................................6
Recommendation and conclusion....................................................................................................6
REFERENCES................................................................................................................................7

Executive summary
The given report deals with the analysis done over Hilton Hotel. Mainly there are three
components of the report. The first section is the development of SWOT which reveals that the
hotel's service quotient acts as its biggest strength while it faces threat from industrial rivalry and
has opportunity to expand its business in the online world. The next section is the suggestion for
the launch of a new product for the hotel whereby the use of smart in-room technologies is
proposed to the entity. Lastly, the marketing mix of new product is shown which reveals that
Hilton will be using premium pricing for the new offering as it is helps the hotel in creating an
unimaginable and lavish experience for the customers.
Introduction
The following report is based on a popular hotel brand named Hilton Hotel. The report
includes SWOT analysis of the hotel through consideration of micro and macro factors. Further,
a new product suggestion for the brand is given. Lastly, the marketing mix has been discussed in
context of the new product that has been proposed.
Company summary
Hilton Worldwide Holdings Inc. is a well renowned and multinational organisation
functioning in the hospitality sector. This company manages as well as franchise an array of
resorts alongside hotels (Czyżewska, 2019). This hotel carries out its business operations in
Australia under the name of Hilton Sydney and has its presence in online world (web presence).
Industry overview
The hospitality industry is considered to be one of the most rapidly evolving sectors
across the global economy. As per a research conducted by Zion Market Research, it has been
determined that the global hotel market was having the value of approximately US $147.57
billion during the year 2018. It is forecast that the respective industry would yield approximately
US $211.54 billion by the end of the year 2026. This will take place at a CAGR of approximately
4.6% between 2019 and 2026 (Global Hotels Market Expected To Reach USD 211.54 Billion By
2025: Zion Market Research, 2020).
1

The brand’s Micro and Macro Environment
Micro
Suppliers: The supply management team of Hilton seeks to develop partnership which
can deliver sustainable products to the hotel. Most of the products are obtained by the hotel
locally, with suppliers being widespread in 90 nations.
Customers: The services offered by Hilton to the customers range from event
management, conferences, family fun package, music concerts & parties, weddings, and many
more such facilities (Chang, Ku and Chen, 2019). Thus, the target audience for the hotel consists
of corporates, travellers, etc.
Competitors: Hilton carries out extensive branding and promotion to gain an edge over
the rival firms prevailing within the same industry (Dardeer, Tag-Eldeen and Salem, 2017). This
makes it difficult for new firms to gain access to market and compete with Hilton. Further, to
retain customers, a loyalty scheme is offered whereby users can earn points and redeem them ton
gain rewards like car rental, cruise, airline ticket, and so on.
Public: The website of Hilton is the most important information source for the public. On
its website, people can find pictures of rooms and other luxury services provided by the hotel
management (Jain, 2020).
Intermediaries: People are not aware of the actual producer of the services provided by
Hilton and thus just leverage the services without giving it a thought. Hilton purchases goods
from physical distribution organisations, moving stock to points of origin and destination.
Macro
Demographic: The size of family have a significant impact over the revenues of Hilton.
In case a couple is without children, they would have more disposable income and would prefer
to take luxury services. However, with couples having more than 2 children, a separate room has
to be taken which increases the overall expense, thus restraining them from investing in luxury
services (Rotimi, 2018).
Economic: The changes taking place in disposable income affect the expenditure made
by the customers in leisure and tourism sector, thereby impacting upon the business operations of
Hilton Hotel.
2

Natural: The unforeseeable nature of weather conditions and natural calamities places an
impact upon the the choices made by the holiday makers. This has a direct effect on demand for
Hilton Hotel.
Technological: The emergence of new technologies presents opportunities for Hilton
Hotel to implement them in the organisational premises and elevate the overall customer
experience.
Political: Corporation Tax and VAT along with political stability are the main factors in
the domain of politics which affect the business operations and revenues of Hilton Hotel.
Cultural: The cultural beliefs and festivals have a huge impact on the demand and
supply statistics of Hilton Hotel. Thus, the prime aim of the entity is to create an experience
which makes the customers feel at home.
SWOT
SWOT analysis is a business management framework which is utilised by an organisation
to gain an insight into the internal and external aspects of the business. In this regard, the SWOT
analysis of Hilton Hotel is given as follows:-
Strengths Weaknesses
 The hotel management employs
effective customer retention schemes
such as discounts, loyalty scheme, free
access to internet, automatic check-ins
and check-outs, and so on.
 Hilton hotel has extensive experience in
hospitality sector and this is why it is
preferred in the form of a luxury brand
by a wide audience (Noonan and
Rankin, 2017).
 Hilton Hotel has a high employee
attrition rate which implies that the
respective hospitality organisation has
been incompetent in retaining its
workforce for a long term.
 The investment made by Hilton in
R&D is much lower than the
investment made by other companies in
the same industry.
Opportunities Threats
 Hilton Hotel has the opportunity to
expand itself into the Australian market
as it is emerging as one of the most
 The biggest threat for Hilton Hotel at
present is identified as industrial
rivalry. There are several key market
3

favourable places for tourism.
 Hilton can incorporate new
technologies to streamline the business
operations and create a better customer
experience.
players in the hotel sector, such as
Hyatt Hotel Corporation, Marriott
International, Four Seasons Hotels &
Resorts, InterContinental Hotels Group,
Wyndham, etc.
Market Segmentation
Market segmentation can be referred to as the process of dividing the market for the
objective of identifying the potential target market segment(s). Hilton Hotel carries out market
segmentation on the basis of psychographic segmentation (Okumus and et. al., 2019). In this
relation, it has been identified that the main aspect on the basis of which segmentation is done by
the hotel is mindset of individuals. Given beneath is a table explaining the 4 appropriate market
segments for Hilton Hotel in accordance with their mindsets:-
Positioning
Hilton Hotel uses the premium pricing strategy and thereby positions its offerings among
the high profile corporates and individuals who possess the capability to afford the services
provided by this hotel. Given beneath is the perceptual map of Hilton Hotel:-
4
Illustration 1: Perceptual Map of Hilton Hotel

New product rationale for the target market
The new product that has been proposed to the management of Hilton Hotel is the usage
of smart in-room technologies. This product will consist of impeccable and luxury features such
as key less entry, smart mirror, wireless charging, personalised entertainment, voice control
environment, personalised room controls, augmented reality, etc. This will provide assistance to
Hilton Hotel in improving the customer experience and elevating it to a level which is beyond
the imagination of the guests. When customers will be provided with these kind of luxury and
comfortable services, they would exhibit loyalty towards the brand. This justifies the suggestion
to incorporate smart in-room technologies in the premises of Hilton Hotel.
Marketing Mix strategies:
Product
The new offering that is proposed to be launched by the management of Hilton Hotel is
the smart in-room technologies. These comprise of lucrative features such as key less entry,
personalised room controls, smart mirror, wireless charging, voice control environment,
personalised entertainment, and augmented reality, and so on. This new offering of Hilton Hotel
will be successfully able to capture the attention of large number of individuals prevailing in the
bounds of global market place. In the long run, it implies the increment of organisational
revenues and profits in the long run.
Pricing
The smart in-room technologies are a component of luxury and royal lifestyle. Thus, to
justify the provision of this product to the customers, Hilton Hotel should make use of premium
pricing strategy. This implies that it would be difficult for the middle class individuals to afford
these services. However, the main target of the hotel is upon targeting the high profile
individuals to attract towards this new product.
Placement
The smart in-room technologies will be provided in the rooms of the outlets of Hilton
Hotel. This means that the new product experience can not be taken in any way over the web. To
compensate for the absence of this facility over the web, the hotel management will be making
5

sure that the physical provision of this offering is able to gain the attention of large number of
individuals. The direct implication of this will be that it would inflate the financial performance
of the business at the fore front of the global market place.
Promotion mix
For the promotion of new offering in the market place among the public, the management
of Hilton Hotel should make use of social media platforms, company's website and broadcast
media. This will provide assistance to the management of Hilton Hotel in capturing the attention
of a large base of audience. Through creation of awareness among the public about the new
offering, the aim of the hotel is to stimulate the purchase pattern as well as behaviour of
individuals. This will imply that the customers will get easily lured to take an experience of the
smart in-room technologies provided by Hilton Hotel.
Recommendation and conclusion
On the basis of above discussion done in the report, it has been inferred that micro and
macro analysis is important for an organisation to reach to meaningful conclusions in relation to
its business performance. Further, new product launch is crucial for every company as it helps in
enhancing the market reach.
As per the overall analysis of the hotel brand, it is recommended to the management of
the organisation that Hilton Hotel should rapidly incorporate the smart in-room technologies to
elevate the customer experience and instil a strong sense of loyalty within them. Also, it has been
suggested that the firm should take regular customer feedbacks to acknowledge the service gap
and thereby work upon filling the same.
6

REFERENCES
Books and Journals
Jain, I., 2020. How to Upgrade Hotel Internet Hilton: Concrete Answer to Your Inquiry.
Chang, Y.C., Ku, C.H. and Chen, C.H., 2019. Social media analytics: Extracting and visualizing
Hilton hotel ratings and reviews from TripAdvisor. International Journal of Information
Management, 48, pp.263-279.
Dardeer, M., Tag-Eldeen, A. and Salem, I., 2017. The Influence of Physical Work Environment
on Hotel Back-of-the-House Employees’ Satisfaction and Productivity: A Case Study
on Hilton Hotels. JOURNAL OF TOURISM RESEARCH V. 18 November 2017, p.43.
Czyżewska, B., 2019. The Story of Hilton Hotels. Goodfellow Publishers.
Rotimi, A., 2018. Impact of the uses of various technologies on the thermal performance and
energy efficiency of UK hotel buildings: application to Hilton hotels in the
UK (Doctoral dissertation, University of West London).
Noonan, A. and Rankin, C.P., 2017. Hilton hotel worldwide: A case study exploring corporate
social responsibility and stakeholder management. International CHRIE.
Okumus, F., Altinay, L., Chathoth, P. and Koseoglu, M.A., 2019. Strategic management for
hospitality and tourism. Routledge.
Chathoth, P.K., 2016. Historical evolution of hotel chains. The Routledge Handbook of Hotel
Chain Management, pp.53-66.
Dumoulin, R. and Giacomel, A., 2020. Disruption and the Strategy of Hotel Groups. Shapes of
Tourism Employment: HRM in the Worlds of Hotels and Air Transport, 4, pp.9-21.
Chen, L.F., 2019. Hotel chain affiliation as an environmental performance strategy for luxury
hotels. International Journal of Hospitality Management, 77, pp.1-6.
Online
Global Hotels Market Expected To Reach USD 211.54 Billion By 2025: Zion Market Research.
2020. [Online]. Available
Through:<https://www.globenewswire.com/news-release/2019/03/08/1750501/0/en/
Global-Hotels-Market-Expected-To-Reach-USD-211-54-Billion-By-2025-Zion-Market-
Research.html>.
7