MM S5

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Lahore University of Management Sciences, Lahore *

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AMC100

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Marketing

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Nov 24, 2024

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Marketing Strategy of Hilton analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Hilton marketing mix, help the brand succeed. Hilton marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives. Hilton Product Strategy: Hilton group provides the variety of hospitality services across the world through its hotel chains. Luxury hotels chains, focused services like Hilton Garden Inn, executive services like extended stay suites and vacation hotels etc are a part of its marketing mix product & service strateg7. Loyalty program called ‘HILTON HONORS PROGRAM’ is among the special services for loyal customers. Hilton’s target segments are the business segment with convention and leisure segments as well. For expanding the business Hilton have collaborated with airlines, car rentals, online platform, cruises, shopping and dining outlets, rail travels and financial institutions like American Express for easier payment methods. With different tier membership of Blue, Silver, Gold and Diamond, guests can access Hilton’s services at subsidized prices. Among this ‘Diamond Membership’ is exclusive among all. The services of the hotel chain are maintained by customer relations via feedback and satisfaction index. Hilton Price/Pricing Strategy: Being executive service provider Hilton’s targeted customers are an exclusive segment of society. The cost of different types of hotels by Hilton group serves for the specific purpose. Just like Hilton Resorts are situated at beach/lakeside for the different experience than airport hotels. With this, all exclusive hotels, group has always maintained exclusive price segment. In India, the price range of single room of Hilton hotels is from 5000 to 35000 per night considering Indian metro cities. The price range varies with the value-added services as extra wifi, parking, food, exclusive services of guest cost get accumulated. Premium prices are calculated with the

premium cost for value-added services like spa, restaurant, breakfast and dynamism services. The exclusivity of the brand is maintained by its exclusive customer segment pay premium tariffs. Hilton Place & Distribution Strategy: Hilton presence is worldwide with 103 countries with more than 5100 properties. The group has shown the considerable growth with time. Starting from the US, Hilton has focused on western countries as the group targets exclusive segment of the society. With time the group is focusing on new emerging markets like India and China. With the growth in international business in new emerging markets luxury service provider is expanding their business in this country. With different brands, Hilton group has different marketing as well as distribution strategies. The services provided by Hilton group has always focused on best services resulting in selecting the better location for setup of new hotels. small town, metro business hotels, airport hotels, luxury hotels and Holiday and vacation hotels are some of the hotel chains according to its requirement. Hilton Promotion & Advertising Strategy: The Hilton group is the well known brand in the hospitality industry for a long time. The group have extensively focused on the exclusive services and customer satisfaction. The target customers are business customers all over the globe. The group have collaborated with many business firms, multi-national companies, institutes and various groups of their booking on priority. Also, The Hilton group has collaborated with Payment Banks, different restaurants for the variety of food provider and much more resulting in more reach to the Hilton hotels which is among promotional strategies of the group. Other marketing is done with the content of premium magazines different customer review websites. Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Hilton. Physical Evidence: The Hilton group hotels and resorts have great reach and presence of its working properties across the globe. The group has tied up with many hotel booking chains and websites to increase its reach and evidence in the market. When it comes to exclusive hospitality market, ‘The Hilton group’ is among famous hotels hotel places. Manipulation of customer demand by converting it to hospitality services. Even the group is among the market leaders; there is tough competition in

the hospitality sector. With the variety of locations and type of services, the Hilton group carry a lot of weight in the market. People: Target market and people directly related to this business. The hoteling business worldwide only depends on the loyal customers and upcoming market customers. Hence to maintain this loyalty, the hotels need to maintain its services, qualified staff and market image. As discussed above targeted customers are business executives hence to maintain the customer base it's important to provide the hospitality services in which The Hilton group has successfully served. Running support desk, customer services, and organizing different entrainment events for customers are some of the strong bases of Hilton success. Process: The systems and processes of the Hilton groups are considered as one of the best management hotel chains in the world. The flow of the processes, services to the customers of Hilton group is consistent. Due to reliable processes and maintained supply chain management of the group has helped to minimize the operating cost. Distribution system, service flows and booking via different web portals helping ‘The Hilton Group‘ to maximize the revenue resulting from maintaining its Market leading position. Hence this concludes the marketing mix of Hilton. Recommended objectives and market strategies From the analysis of the marketing strategy adopted by Hilton Hotel, it is evident that the hotel is a success and most of its approach to marketing has earned it a competitive edge in the UK market. However, there are various improvements that can be initiated in the current status of the hotel so that it cannot only increase the scope of the customer base, but also enhance on its competitiveness. Below are some areas that the hotel can focus on as a way of fostering its competitiveness: 1. Introduce middle class services in the hotel Studies analysing the general populations globally indicate the emergence of huge numbers of

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middle class income earners in the developing economies and emerging economies. At the same time, most of the visitors and tourists that come to the UK belong to the middle class segment of the market. This presents a very large segment of the market that is still growing and has not been exploited by the hotel. Development of products and services targeting this segment of the market will enable the hotel increase the numbers of customers hence most of its business segments will operate at capacity. The main focus of this objective should be the growing number of tourists from developing and emerging economies that are mostly in the middle class levels (Enz, 2009). The situation is even interesting due to the statistics that indicate that middle class tourists travel evenly throughout the year unlike the high end travellers that mostly travel during specific times of the year and holidays. This presents an opportunity that will guarantee high customer turnout throughout the 21 year. As a result, introduction of services targeting middle class earners will enhance profitability of Hilton Hotels in the UK. 2. Embrace innovation in the approach to dynamism As much as dynamism will increase market coverage for the hotel, incorporating innovativeness in the approach to product and service dynamism is essential in maintaining the hotel’s competitiveness in the industry. The customer should incorporate technological aspects of innovativeness in the approach to managing customer needs and demands. Due to the increasing expansion of the hotel industry on a global scale, competitiveness is very high, use of cutting edge innovativeness is one of the tools that can enhance the hotel’s competitiveness and hence market leadership. For instance, Hilton Hotel has invested technologically in all its essential services by ensuring they are all integrated in the hotels web portal. This has increased efficiency at the hotel especially in room booking as the room information is updated regularly. Incorporating such innovativeness in other operations of the hotel is bound to positively impact the levels of customer satisfaction. The ultimate goal is improved productivity and hence profitability of the hotel. 3. Diversification One of the most effective ways of minimizing risks in an organisation is through diversification. Hilton Hotels-UK should consider increasing the scope of its products and services as an approach of minimising risks through spreading its services. Other than the excellent room

services and outdoor activities, Hilton Hotels should increase the scope of innovative products and services especially those targeting corporate events and conferences. This will increase income from such services cushioning the hotel during low seasons when room bookings are lowest. The fact that the hotel is not only well established in the UK, but all over the world, introducing other subsidiaries in the UK that offer services that are common for middle class income population will increase the competitiveness of the hotel in terms of profits. More so, diversification of the hotel’s marketing strategy is necessary to increase the number of people the hotel reaches through marketing. This includes incorporation of new advertising avenues to the already existing channels. Some of the most promising avenue is the online advertising especially the use of social media, which has over 2 billion users worldwide. Such avenues will increase the level of exposure of the hotel to its customers. The fact that the market for the hotel products and services varies with seasons, proper market segmentation is needed to ensure the hotel remains profitable during all seasons. There are many potential customers that the hotel has not reached out to fully. For 23 instance, UK is a sporting country where sports run throughout the year. Developing marketing packages that target sporting personnel will ensure the hotel has customers throughout the year. Consequently, the hotel can achieve these objectives by accessing, contacting, and negotiating with potential customers in order to ascertain their needs. The current pricing policy that is fixated on seasons seems to be affecting profitability of the hotel. Developing a pricing policy that is flexible on a daily basis based on the hotel’s occupancy rate may work well. This may increase the hotels efficiency as it will boost the sales during low seasons as the price will depend on the daily demands (Tan et al., 2009). More so, as much as the hotel has developed customer loyalty programs, more efforts is needed to ensure that regular customers feel special. This should include implementation of customer relationship management that will make them feel like strategic partners of the hotel. This will be essential in the development of long term relationship between the hotel and its customers. Finally, in order to increase efficiency of the hotel by implementing the above strategies and objectives, involvement of the staff in the process is very important. This includes training programs aimed at increasing efficiency and customer service output of the hotel. The hotel should also develop evaluation mechanism that will ensure its marketing

channels are working to ensure it is at par with the current needs of the marketing development in the hotel industry. Digital marketing strategy Company Target Marketing Hilton is using the following marketing tools: Pay Per Click Under this method marketing is carried out in very amazing and simple way. In this strategy of marketing Google gives an option to Hilton and under this approach a relationship is developed. The marketing carrying out selling the ads to Google which is further shows the ads of the company on different research engines. Email Marketing Hilton is also using email marketing because due to huge customer base Hilton has the data of customers. In respect of development of goo relationship. Email marketing is used to inform the customers about the offers of company and the provision of information regarding the new products is also done through E-mail marketing (Hochman, 2008) Social Media Marketing Facebook Use of social media website for the marketing purpose is common activity of Hilton management. The focus is given on the creation of quality content of marketing of the products. Facebook is one of the most used social media tools. Hilton has created its page on the Facebook with 29 million likes. For keeping in touch with the customers the fresh contents and posts are updated by the Hilton management. Twitter Twitter is also used by Hilton for promotion and marketing perspective. The numbers of followers of Hilton on Twitter are 3 million and there are different ways of promoting its blogs and website. Pinterest Publicity is also providing by the Hilton by the use of Pinterest. When Pinterest is liked by an

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individual and when browser is clicked than a notification is sent to him by Hilton (Hochman, 2008) Instagram Instagram is also used for purpose of promotion and marketing. Hilton is regularly using this platform and number of followers of Hilton on Instagram is 2 million. The company display its products which are views by the customers (Jobber and Fahy, 2009) Digital Marketing Communication Mix Plan There are different plans on which the company is working. Currently the reputation gained by the company revealed that it has become a global brand for shopping and purchasing products. Continuous growth of company showed its well organized plans of marketing. The main focus of the company is to launch its website in those countries where it is currently working. Clothes, shoes, accessories, foods, security services, home grocery, and other form of the products are providing by the Hilton on its website. Hilton is constantly evolving as it introduces new items in small regions of the world. Create your locations worldwide. Obviously, if Hilton continues to move so quickly to improve, it will be useful to expand its global reach. Hilton will use the trademarks to attract its clients. They must make this a reason to plan benchmarks to attract customers. Every time a customer enters Hilton , the person concerned certainly has wishes; Hilton tries to fulfil the customer's wishes and requirements. Promotions are used to scan the headline for exposure and notification (Jobber and Fahy, 2009) Monitoring and Control Some of the key tools used for the measurement of the performance of digital marketing plans are given below: 1.Cyfe Behaviours and attitude of customers and salesmen is tracked by the use of Cyfe and provides aggregated business data in the advanced dashboard. Fully examine the organization's performance and see the organization's purchasing behaviours. 2. Kalipfolio Kalipfolio used a computerized board for combing all the data which is collected from the use of various sources. In context of checking and measuring the business strategy of the company it has seen that this tool is commonly used (Saleh and Shukairy, 2010)

Digital marketing activities: Proper way of digital marketing is using by the management of Hilton under the criteria of RACE marketing planning:  Reach : SEO and keywords are used with great care to make ads more attractive  Act : acts of developing the style I more simple way is learn and tested by company  Convert : the personal idea is converted by the company after experience into recommendations and suggestions.  Engage : there is proper system of engaging customers with the items available on the website of Hilton . Integrate digital activities into the overall strategy Integration is ocnsideread as one of the important ways of managing different activties in colelctive way. Under integarted process, various rules and principels are followd by the company for publication and advertisement in digitalmrketing. So combination of various policies, regulations and rules is known as integartion (Saleh and Shukairy, 2010) There are different tools which are used by the digital marketing management. Some of the important tools using by the management of Hilton are given below: Traffic Metrics; traffic metrics is consider as the increasing numbers of visitors and the use of digital marketing.  Overall : overall visitors indicate that how much people have visited the company’s website.  Mobile : Those users of Hilton who get access to company’s website with the use of mobiles.  Traffic Source : these are the sources which become the reason traffic comes to the website of company and these include social, referral, organize and direct sources (Smith, 2016)  Demographic : This shows the area belonging to customers using the products of company more.

 New vs. returning : a customer who come for the first time and buy a product and returning customers is a customer who got satisfied by the product quality and come back to make purchase again. Conversion Metrics; when the traffic which come and visit the website of a company and then it make purchases after getting satisfactory results. Bounce Rate; This show the people who come to visit the website but quickly left the website without reading any content. Exit Rate; some links are given on the website pages which are when click than you can enter into new website. So Exit Rate is the number of people who visit a website through clicking on the links given (Thompson et al., 2011) Revenue Metrics; affectivity of digital marketing could be evaluated by the consideration of revenue metrics. Cost to Acquire a Customer and Return on Investment are some important aspects and elements in this perspective. This metrics is used by Hilton because it is considered as important tool of assessing the area of improvement. Control measures must be developed by the company’s management to ensure success of the marketing plan. Measures of control that can be utilized in this case are as follows : Some variables are there which can be used for standards of performance and they are as follows:

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 The amount of sales  Share of the market  Profitability  Feedback of consumers Feedback and surveys can be used in order to obtain market plan results. Positive results state a successful marketing plan and if the result is negative then alterations and corrections are to be done. Marketing operations plan comprises of several factors which are as follows: 1. Customer relationship management is important in order to develop a connection with consumers. Technologies and innovation are important to develop customer relationship management and making the company to focus more on customers. 2. Optimization of website is important for the company as due to these connections can be developed by the company through this tactic of marketing with the public. Popularity of the brand will increase due to this (Forrester, 2007) 3. Customer’s perceptions regarding new outlets and new launches would be gained through a survey. Online surveys can be carried out of the customers through websites or social media to know regarding their preferences regarding the items. 4. A unique team of marketing will be created in order to develop the concepts and so that marketing tactics can be carried out and data can be collected when the marketing ends.

Conclusion It is concluded that Hilton is one of the well-known companies on internet. It is one of the fast growing companies. Networking of the company is based on Omni channels. There are different ways by which customers are attracted by the Hilton management. Hilton is concluded as important platform of understand the importance of use of online media for marketing.

MM S5

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