MARK101 Principles of Marketing: Market Analysis of Hilton Hotel

This assignment analyzes the market for Hilton Hotels in New Zealand, focusing on the luxury hotel segment. It begins with an overview of the product-market, defining the industry and quantifying its size, while also examining recent market changes, such as increased demand for luxury services and the rise of substitute goods. The report then investigates evolving customer buying patterns, highlighting the demand for amenities like spas and pools, and discusses the impact of these changes on Hilton's operations. Segmentation strategies, particularly targeting high-income groups and leveraging database marketing, are also explored. The second part of the assignment identifies and justifies two key opportunities for Hilton, including innovation in customer service and effective technology use, and two major threats, such as price competition and the entry of international brands, outlining their potential impacts on the market. The analysis references relevant sources to support its claims.

MARK101 – Principles of Marketing Tri 2, 2017 Tutorial Assignments
Tutorial Assignment 2: Market Analysis to Opportunities and Threats DUE DATE: WEEK 6 via
BLACKBOARD
Name: __________________________________________ Student ID: ___________________________________
Assignment Product Category: _______________________ Brand /Company:
______________________________
Market Analysis – 6 MARKS
1. In NO LESS than one page and NO MORE than one and a half pages (about 700 words), outline the key trends in your
product-market.
Make sure you address the following:
 The name of your product or company and describe the product-market they are involved in. Be specific in defining the product
market your company is in, and justify your definitions.
 Discuss the size of the market overall (i.e. can you quantify in dollar value, number of firms, size of firms, numbers of consumers
etc.)
 Explain the changes that have taken place in the market in the recent past. (E.g. is this a new product category, product type or has
there been an influx of new entrants etc.)
 What are the buying patterns within the market, how have these changed over the last 5 years. (e.g. consumers are buying more/
less or buying substitute goods). Discuss why this is and the effects these changes will have on your company.
 What segmentation strategies are used by the organisations completing in the Marketplace? (i.e. can we differentiate between
different groups of buyers?)
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MARK101 – Principles of Marketing Tri 2, 2017 Tutorial Assignments
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Market Analysis:
The company I have selected for conducting the market analysis is Hilton hotel that is operating in New Zealand. Hilton is a global leader in
the hotel industry, the industry provides various services such as accommodation, bar, restaurants, banquet, and resorts etc. The operations of
the Hilton hotel are spread in across 78 countries and 6 territories. The size of the Hilton hotel industry in the New Zealand market is
continuously increasing. Hilton New Zealand is having operations at 3 places or in other words Hilton is having firms at Auckland,
Queenstown, and Taupo (Hilton, 2017). Hilton provides luxury hotels as it is most popular luxury hotel available in New Zealand. Hilton
brought many innovations in the services that they are offering to the customers. The hotel started providing the facility of the Spa, heated
pool, spa pool, sauna, steam room, fitness center, etc.
These services are rarely provided by the hotels and there is no as such arrival of the new entrants in this product category. The changes took
place in New Zealand because of the demand for those services by the customers. With the increase in the life style of the people, there is a
hike in the demand of the luxury hotels. Buying pattern of the customers is changing as they want the facilities such as spa, hot water pool, etc.
the substitutes of the luxury hotels are increasing in New Zealand which creates an impact on the customer preference (Mok, Sparks, &
Kadampully, 2013). The additional services provided by the Hilton give a tough competition to the other hotels. Substitutes of the product or
change in the demand of the customer create an impact on the working of the Hilton as they have to invest more in the technologies to satisfy
the needs of the customers.
Hilton follows some of the segmentation strategies which help the company to compete in the market. Generally, Hilton target segment having
a high-income group and according to the customer requirements. As Hilton provide additional value added services to the customer according

MARK101 – Principles of Marketing Tri 2, 2017 Tutorial Assignments
Hilton follows some of the segmentation strategies which help the company to compete in the market. Generally, Hilton target segment having a
high-income group and according to the customer requirements. As Hilton provide additional value added services to the customer according to
demand of the service company target segment. For instance, most of the youth prefer to go for spa, hot bath, etc. so company targets youth
segment (Demirciftci, & Kızılırmak, 2016). For implementing these segmentation strategies company utilizes database marketing and the
frequent requirements of the customers. A company gets to know about the requirement of the guest from their employees. Employee's plays
important role for the effective working of the Hilton, the employees communicate the demand or desires of the customers related to the
additional services. The company believes in hiring talented employees who can filter the requirement of the customers and can easily form a
good relationship with the customers. This will enhance the profit of the company and also enhance the customer loyalty towards the brand.
Company said on the commemoration of the hotel 125th anniversary of personalised service to visitors across the world (Hilton, 2017).
Threats and Opportunities – 4 MARKS
2. List at least two opportunities and two threats evident in the marketplace and justify your answer. Explain the impact the threat/
opportunity has on the market.
Opportunities What is the impact of the opportunity on the market?
1) Innovation in the customer service In the New Zealand market, Hilton can bring innovative ideas in customer service.
Innovations in the service will create an impact on the market. The demand for the
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MARK101 – Principles of Marketing Tri 2, 2017 Tutorial Assignments
service provided by Hilton will rise and the competitors in the market might lose their
potential customers.
2) Effective use of technology The company has an opportunity to make the effective use of the technology by doing so
a company will be able to provide better services to the customers. This enhances the
customer satisfaction and will also help the company in generating more revenue (Ng, &
Hamilton, 2016). Rival companies will also try to adapt new technologies so that they
will be able to compete in the market.
Threats What is the impact of the threat on the market?
1) Competition on price point Each and every industry faces competition related to the cost of the services. In the New
Zealand market, Hilton also faces competitive price threat from competitive hotels such
as Hotel DeBrett, SkyCity Grand hotel, etc.
2) Entry of international established brand Hilton can also face threat if any of the well-established hotel brands enter the New
Zealand market. The hotel doesn’t want to lose their potential customers (Tingley,
Hitchmough, & Chapple, 2013). Hence, the competition in the market among the hotels
will increase.
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MARK101 – Principles of Marketing Tri 2, 2017 Tutorial Assignments
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MARK101 – Principles of Marketing Tri 2, 2017 Tutorial Assignments
References
Demirciftci, T., & Kızılırmak, I. (2016). Strategic branding in hospitality: Case of Accor Hotels. Journal of Tourismology, 2(1), 50-64.
Hilton. (2017). Hilton Lake Taupo. Viewed on 22nd August 2017 http://news.hilton.com/index.cfm/property/detail/532
Hilton. (2017). HOTEL LOCATIONS IN NEW ZEALAND – HILTON. Viewed on 22nd August 2017 http://www3.hilton.com/en/hotel-
locations/nz/index.html
Mok, C., Sparks, B., & Kadampully, J. (2013). Service quality management in hospitality, tourism, and leisure. Routledge.
Ng, P. Y., & Hamilton, R. T. (2016). Experiences of high-growth technology firms in Malaysia and New Zealand. Technology Analysis &
Strategic Management, 28(8), 901-915.
Tingley, R., Hitchmough, R. A., & Chapple, D. G. (2013). Life-history traits and extrinsic threats determine extinction risk in New Zealand
lizards. Biological Conservation, 165, 62-68.
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