Hilton Marketing Strategy: Environmental Analysis, STP, & 7Ps Mix

This report provides a comprehensive analysis of Hilton's marketing management strategies. It explores the organization's environment using PESTLE and SWOT analyses to identify threats and opportunities. The report also examines Hilton's application of the STP (Segmentation, Targeting, and Positioning) model, detailing how the company segments its market, targets specific customer groups, and positions its services. Furthermore, it analyzes Hilton's marketing mix, focusing on the 7Ps (Product, Price, Place, Promotion, People, Process, and Physical Evidence) and offers suggestions on how the company can improve its overall marketing strategy to enhance its competitive advantage and market presence. This document is available on Desklib, a platform offering a range of study tools and solved assignments for students.

MARKETING MANAGEMENT

Table of Contents.
INTRODUCTION...........................................................................................................................3
TASK ..............................................................................................................................................3
Exploring the organizational environment by applying environmental analysis tools to
determine threats and opportunities.............................................................................................3
Analysing STP tactic and providing how segmentation, targeting and positioning are recently
applied by chosen firm-500.........................................................................................................8
Examining market mix concentrating on 7ps that organization is recently applying- 1000.......9
Providing suggestions on how company can improve its marketing strategy...........................12
CONCLUSION..............................................................................................................................14
REFERENCES .............................................................................................................................15

INTRODUCTION
Marketing management is defined as procedure of controlling and managing key aspects
related to advertising function or operation of companies, whether it is small or large. It drives
the attention of marketers toward setting strategic and achievable goals that help to reach expect
outcome and provide a lot of benefits. This process aids a company to organize their plans
related to marketing by following all the steps in appropriate manner. It has given them power to
take right decision, which they used to obtain key advantages in bulk. The current assignment
will be based on Hilton, which falls under the category of top 10 hotels in the United Kingdom.
It has provided excellent accommodation and meal services to consumers, who tend to travel the
world and prefer to utilize the best hospitality service. The study will explain organization
environment via implication of environmental analysis tools that help to determine opportunities
& threat that impact on hotel. Furthermore, it will also justify application of STP model and
strategies used by chosen firm related to that. The report will clarify 7ps of marketing mix that
hotel is applying and suggestions in regard to marketing tactics improvement, for purpose of
venture growth.
TASK
Exploring the organizational environment by applying environmental analysis tools to determine
threats and opportunities
The extent of competition or competitive environment within business world has
increased that impacted each and every organization, whether it is public, private or others. Due
to this reason, companies and their management may move to take decision to develop and
implement strategic marketing tactics. In case of Hilton, firm may also tend to create its effective
and useful advertising tactic that may aid to promote its services globally. It may need to
advertise satisfactory accommodation services that its management may plan to offer target
consumers. There are different types of factors accessible in the corporate world that may put
direct impact on hotel and its current practices, either in negative or positive manner. It is quite
essential for Hilton and administration to demonstrate each factor, which may drive their
concentration toward applying the best environmental analysis models such as PESTLE and
SWOT.
PESTLE analysis-
Political factor-

Changes related to any political factors may put direct influence on current initiatives and
actions of companies. In case of Hilton, political stability, employment and tax policy may put
positive impact in term of providing organization opportunity to grow and expand its venture
across national boundaries. It may contribute to make management able to develop effective
plans such as marketing, which in turn increase organizational profitability and customer base,
even better than last few years, when it may operate within hospitality industry (PESTLE
Analysis for Business Analysis, 2022). It may allow hotel to grab the chance of becoming
competitive brand in the sector, where different types and sizes of companies accessible as key
rivals that are able to affect the way it may run venture in the market.
Economic factor-
Economic growth, inflation, employment and other factors are included in category of
this force, that may affect an organization actions and decisions, when any change occur
regarding these. For example, better extent of economic growth within the world of business may
put positive impact on Hilton success and progress. As it may provide hotel chance to gain the
attention of potential and profitable guest, who tend to spend their time with friends and family,
away from stress regarding professional life. Furthermore, it may also provide firm opportunity
to hire new and skilled people, who are able to achieve its aim and objectives in appropriate
manner. They are capable to make achievable commitment, which affect organizational progress.
Social factor-
This factor may also put impact on Hilton in term of driving organization attention
toward considering current trends, that its guest prefer to follow. For example, current market
trends such as online shopping or reservation may put positive impact on hotel. It may give firm
chance to retain and gain the attention of more target audience, among which each person is able
to promote venture after obtaining appropriate satisfaction via using accommodation services in
hospitality sector. It may consider online reservation or booking action or behaviour of
consumers, which they prefer to refer others. It may help firm to grow rapidly with booking
rooms and other services by using advanced technologies via internet.

Technology factor-
Technology advancement play vital role in growth and success of Hilton as it may enable
organization to grab chance of becoming top brand in term of generating excellent brand
awareness. For example, it may utilize advanced digital marketing channels such as Instagram
for purpose of promoting hospitality or accommodation services internationally, which in turn
gain the attention of more consumers and help to build wide customer base, better than rivals.
With this technology or tool, hotel and its management may conduct effective marketing action
and develop strategy that is quite essential for them to do that appropriately and in successful
manner.
Legal factor-
Changes related to employment, business, data privacy, consumers, etc. put negative
impact on a company, when they may do not consider these modifications. For example , in case
Illustration 1: Pestle Analysis
(Source: Pestle Analysis: A Mechanism for Analysis of Businesses, 2020)

of Hilton, due to pandemic, employment and work place safety regulations might be altered that
put negative impact on its current operational as well as functional practices. It may lead to
increase work pressure on management in term of developing a workplace safety policy by
following pandemic guidelines that may lead to increase demand for more resources such as
human resource. It is quite essential for hotel to consider this factor appropriately and make
possible actions to overcome this threat and their impact.
Environmental factor-
Customers and government concern related to environmental sustainability may drive the
attention of companies, especially hospitality organizations toward developing sustainable plan
and then promote the same. It may affect Hilton and its operational success positively, in term of
permitting company to sustain for longer by considering and conducting corporate social
responsibilities (CSR) practices that help to build positive brand image in the sector. It may also
provide chance to attract those stakeholders who want to retain or work with sustainable brands
such as Hilton that play vital role to make environment safe from harmful factors such as air,
water, noise and other types of pollutions. It can be said that CSR concept provide a lot of
benefits to whom who utilize that.
SWOT analysis-
Strengths-
The key strength of Hilton, that may put positive affect on its venture is skilled and
knowledgable workforce, among which each candidate is able to achieve strategic and set aims
of hotel (SWOT Analysis: What It Is and When to Use It, 2022). With effective team members,
organization is able to gain competitive advantages and grab opportunity to enhance guests
satisfaction, even better than last few years or months. Its employee retention strategy is also
included in category of organizational strength that influence workers to retain with brand and
work forever, instead of switching to other brand such as Marriott a competitor of Hilton. They
are able to build great brand image in the market and increase organization operational
effectiveness.

Weaknesses-
Lack of leadership implication is considered as hotel weakness that may affect the way it
may grow and sustain within hospitality sector, opposite to rivals that are also running their
ventures in same industry (How to Do a SWOT Analysis, 2022). This weak point may become a
biggest threat for company, which is quite essential for it to deal via application of strategic and
effective approaches. Lack of flexibility due to large size of hotel may also determine its
weakness that lead to decrease employee morale and confidence level, which is important for
company to increase more than the other hotels who attempt to motivate their candidates as they
are essential resources for them that help to gain competitive benefits.
Opportunities-
Hilton and its marketer may make their marketing strategy much effective than ever, in
term of grabbing opportunity to utilize advanced technologies such as social media. It may
encompass key channels such as Instagram, that population in the world has been utilized for
Illustration 2: SWOT Analysis
(Source: What Is a SWOT Analysis, 2021)

varied reasons. For example, hotel may utilize this approach in term of generating awareness in
the market about new or existing services as well as products that it may plan to introduce by
adding more value according to target market needs. It may grab the chance of building wide
consumer base by taking approach to book accommodation service online, as it may save
management time and efforts to make reservation offline where individual person takes a lot of
time to select what is better for them or not.
Threats-
Intense competitive in hospitality industry may put negative impact on Hilton, in form of
driving its attention toward developing new plans that consumes a lot of time and need strategic
resources. It may affect marketing plan and tactic of hotel, which put pressure on management
and marketer to make better than rivals strategies. Pandemic is also covered in list of threat that
increase work pressure and influence negatively than any other internal or external factors.
Analysing STP tactic and providing how segmentation, targeting and positioning are recently
applied by chosen firm-500
The STP analysis is the analysation is way in which the organization that is Hilton chooses
individuals to sell its services to and positions the services to approach the need and the
aspiration of the individuals in the best possible ways (Jamaluddin, Zainol and Sharif, 2021).
This analysis is considered to be the one which has the tactics,
SEGMENTATIONS :
The segmentation of Hilton is considered to be the very effective in the targeting specific
consumers which is on the basis of the characteristics of the market of this organization. It is the
way in which the organization is able to develop suitable segmentation that effects the target
effectively and efficiently (Lopatin and et.al., 2019). The market segmentation is considered to
be divided into the following groups,
Geographic Segmentation :-
In this segmentation the targeting of the specific consumers groups according to the
geographical locations of the customers is taken for differentiating in them. It is the geographical
segmentation which is strategy that is mainly focusing on the strategy of building hotels in those
popular locations which will attract more individuals.
Demographic segmentation :-

It is the set of variables of the demographic which is the market segmentation which
includes the gender, life-cycle stage, income and social class. It can be said that Hilton targets
the customers segment of mostly of people in their 40s as they have high levels of income
belonging to the upper social class.
Psycho-graphic Segmentation:-
This is that segmentation in which the demographics go beyond demographics as it is
able to examine the person thinking, feels and behaviours that utilizes personality lifestyle and
values of segmenting the variables.
TARGETING :
In this tactic Hilton hotels target the customers segments which it identifies as the best
and the most attractive ones. This impacts the potential growth of the organization. It is helpful
for the comparison of other segments for careful way of making service for the market. It is
helpful for the legal technological of the social barriers for the impact the strengths and
weaknesses. As the part of the targeting this organization focuses on the gender of the social
impacts which is considered to be effective for the growth of the organizational development. It
is also very important for the business to consider the factors which influence their choice in the
customers.
POSITIONING
It is the step in which the organization identifies the position of the product and its target
that is the most valuable for the customers segments (Withers and et.al., 2019)
. It can be said that the customers needs to purchase the product to be in the competitors. The
identification of unique selling proposition is to draw a method which would help the company
in look at the wants of the customers segment and valuing their needs such that it can be met. It
can be said that the positioning of the hotels is all about creating value for the customers so that
they get influenced towards the organization make it the first choice of for the hospitality
services.
Examining market mix concentrating on 7ps that organization is recently applying- 1000
The marketing mix of Hotel Hilton considers 7 different aspects of the marketing mix which are,
Product, Price, Place, Promotion, People, Process and Physical evidence.
Product/Service :

Hilton hotel company provides many services in the hospitality industry in the entire
world. It is mostly luxury hotel chains, focusing services like Hilton Garden Inn, the executive
services like the extension stay suites and holiday hotel etc. The service of the organization has
been developed with the help of segment that is the convention of the leisure segments as well.
This organization has expanded its services in the collaboration with airlines, car rentals, online
platforms and payment methods which help the organization to provide better results in the
business. The services of the hotel is a chain which is related to the customers feedback and
experiences. It is said that the index of the customers which is related to the feedback and
satisfaction index.
Price :
The pricing strategy of the organization is considered to be the Hilton's target customers
and exclusive segment of society. It is said that the cost of the different types of hotels by Hilton
group serves a very specific purpose. This hotel is considered to be always maintaining a
exclusive price segment depending on the customer's income level and geographical
segmentation. The price range of the single room of Hilton can vary from 5000 to 35000 to a
considering the per capital income of the cities. It can be said that the price of this organization
also depends on the quality of services it delivers as it believes in value proposition for price
distinction (Wahyuntari, Sutarma and Antara, 2020).
Place :
The presence of this organization is worldwide in 103 countries with more than 5100
properties. This group shows a considerable growth and width time. The focus of this
organization is mostly on the western countries as it contains most of the target customers of this
company. Hilton is also focusing on some new emerging markets that are India and China
(Ekawati and Yasa, 2018). The growth of the international business in the new emerging
marketing luxury service provider Hilton has been able to develop different brands. The focus of
this brand is to develop a distribution strategies which is impacts the marketing practices of the
well distributed strategies. Expansion of the business has helped Hilton to increase its market
share. It means that the business has been able to create new distribution practices.
Promotion :
The promotion of the administration strategy is considered to be the Hilton marketing
strategy is to feed off the name of the organization. This organization is a well-known business

that is brand of hospitality industry for a longer period. This group is extensively focusing on the
exclusive services and customers satisfaction (Dewi, Yasa and Indiani, 2018). The target
customers satisfaction which is the target customers that impacts the customers all over the
globe. It also collaborates with different organizational bodies which is helps it to advertise the
organizational practices. It can be said that the growth of the business is influenced by the
different restaurants which provides other varieties of food. For its promotional purpose this
organization also utilizes other strategies such as the premium magazines and other customers
review websites.
People :
The target market of this company are the customers which are related to some business
organizations themselves (Setiawan and Prakoso, 2019). In the hospitality industry the loyal
customers are very important for an organization to maintain its services qualification towards
their market image. Specially for the customers segment of Hilton the loyalty of the customers is
considered to be very effective in the hospitality services which can be successfully determined
with the customers base. It is very important for the hospitality industry to provide the services
which can be successfully served by the support desk and customers services and also be
effective in the organization of entertainment.
Process :
The systems and the process which impacts the Hilton Groups operations are the
considered to be one of the best management of the hotel chains in the world. The flow of the
process and services is the considered to be the management of the Hilton group is said to be
very consistent. This reliable process is said to be the key in the maintenance of the supply chain
management of the group which helps in the minimization of the operation cost. The distribution
of the service flows of the booking is said to be through the different web portals that helps this
organization in the maximization of the revenue that is results. It is considered to be very
important for maintaining the competitive advantage in the market.
Physical Evidence :
In this organization the hotels and resorts are known to have a very great reach and
presence for working with the different properties across the globe. It can be said that this
organization has group of hotel chains which are the website for the increasing and evidence in
the market. The exclusiveness of the hospitality market is said to be the one of the best across the

nation. It gives the organization a competitive advantage in its customer demand for converting
the hospitality services into customer satisfaction. In the different groups of marketing leaders
there is a very tough competition in the hospitality sector which is seen to have different variety
of locations and the type of services that carry a lot of weight in the market.
Providing suggestions on how company can improve its marketing strategy
Marketing strategy plays crucial part in delivering the best results for the growth of the
company. Also in hospitality industry it is very important that proper strategies are developed so
that it could gain greater competitive advantage in short run. Below is list of suggestions to the
Hilton hotel.
 It is to be recommended to the quoted firm that in the current situation of Covid the firm
should use better marketing tools and techniques so that people are aware about the
various safety measures that are taken by the quoted firm to ensure safety of its
customers. Also, these marketing tools could be used either through digital media or print
media that is most popular nowadays among the public to get certain updates about the
pandemic.
 It is to be suggested to the quoted firm that it should opt for more promotional tools such
as offers and discounts for limited time period to increase the sales of the business and
also create the loyal customers for the future (Serra, Morais and Cunha, 2020).
Furthermore, such techniques will not only generate revenues for the firm in pandemic
but will also allow it to stay ahead in the competition amongst rest of its competitors.
 Also, it is recommended that more cleanliness and hygiene methods must be adopted
like timely sanitizing and following healthy food protocols that will allow more people to
experience the best services of the hotel. Moreover, timely feedback must be taken by
hotel staff after delivery of each services so that any corrective action could be taken on
time without many delays (Bokareva and Yudina, 2020). Also, this type of strategy
would help the firm in developing better customer relationships that is essential for the
development of the firm on huge level.
 Further, while expanding the business into new regions it is recommended to the quoted
firm that it should opt for designing the infrastructure and other things according to the
local culture so that more people are interested towards receiving the services of the hotel
(Tuomi, Tussyadiah and Stienmetz, 2021). Using this type of marketing strategy would