the objective of this assignment to shows the how the organisations in hospitality use the marketing strategies. This assignment presenting evaluation of the marketing introduction about Hilton Heathrow hotel, their loyalty programme, their public relations, e-marketing, viral and guerrilla marketing, segmentation marketing, network and customer relationship marketing strategies porter’s five forces.
Definition of marketing as following:
According to Philip Kotler:- “marketing strategies are the combinations of all important marketing goals into a comprehensive plans, it should be from marketing research and its centre of attention should be right marketing mix to achieve maximum profit and sustainability for the organisation”.
Hilton Hotel and resorts is a Hospitality industry founded by Conrad Hilton in 1919 in Cisco, Texas (U.S) and has 540 hotels in 78 countries. Its first brand was opened in Business travel and leisure travel are the two marketing emphasis the company is focusing on. Hilton Hotel and Resorts are mostly located in city centres, near airports etc for the easy access for the customers. This assignment is on Hilton Hotel (HHonours) near Heathrow Airport; within Heathrow area they have three branches. Easy access from all terminals Heathrow central and terminal 5. It has partnership with different airlines and car rental companies. It just 6 minutes walk away from T4 and 10 minutes away by courtesy shuttle bus from T5.
Hilton London Heathrow Airport hotel – Exterior
Marketing: – marketing strategy plays a vital role to success for business. Marketing in Hospitality industry is one of the main elements to increase profits and success of the business and it is playing very important role in hospitality. It helps the organisation to get success through understand their customers, what they want, their needs; priorities and demand from the organisation and what are their expectation level from customer service point of view, leisure and infrastructure etc. It is really easy these days through internet. The organisation can also put surveys on internet, blogs, websites, social media, etc. For example Hilton hotel is available on face book where anyone can like, comment and post their views and also customers can check their updates, offers etc.
Marketing mix is a mixture of four fundamentals product, price, place and promotion. That actions used to satisfy the wants of an organisation’s target market and at the same time achieve its marketing objectives. (Stanton) 1994.
Product- this feature of marketing mix is including planning, developing and producing the right category of products and services in the market by an organisation. In short words what is the quality of the product, size of the product? How is it looks like, design of the product, value of the product, about packaging, testing and range etc?
At Hilton Heathrow hotel they have swimming pool, twenty four hour fitness centre then for relaxation they have sauna bath and steam room and beauty salon as well. They have artificial beach terrace. They have contemporary spacious room, executive lounge, executive rooms and suites. Hilton is the foremost globally friendliness company spanning the housing sector from luxurious full services to extended stay suites hotel. They mostly attract to business people as a luxurious hotel in the market.
Price- To fix a right price of product is a most difficult task. Price of the product should be reasonable and affordable so organisation can sell their product easily and successfully in the market. There are lots of steps between set the right price for example: determination of unit price of the product, pricing policies and strategies, discounts, credits, cost, terms of delivery, payment, competitive price credit policy etc.
Hilton hotel is quite expensive and luxurious hotel, their prices are high but still flexible according to the seasons. They give some discounts on special occasions.
Place- It is called distribution channels, storage and warehousing, coverage channel, inventory management, selection channel, distribution logistics etc. Management of organisation is responsible to choose and deal with distribution channels so customers can get the product at right place at right time. They should develop physical distribution. Wholesalers and retailers are most important channels which are used for physical distribution of goods.
Hilton hotel is near London Heathrow airport which is only give direct acees to the terminal 4 airport by walk and shuttle bus to terminal 5. This hotel offers fully equipped business centre of 2,590 square metre banquet hall for special events. Business conference for up to 300 guests of 30 meetings rooms.
Promotion- the fourth p is promotion it does include determination about direct marketing, sales promotion, advertisements, publicity, exhibitions, public relations activity etc. Most important tools are advertisements and sales promotion which are used to promote the sale of products of organisations. The best way for advertising strategy, organisation should recognise the competitors what are they providing additional to customers. This will help to an organisation to do improvements into their values and to set marketing strategy. Promotional activities are free distribution of sample of product, contests etc. These types of tools are expressive which does help to beat the competition in the market to organisation. Advertisements are used to communicate and pass the information to customers and consumers about the features of product through television, internet, newspapers and magazines, radio, billboards, banners and posters etc.
Limitations Doing advertisements or promotion is expensive tool but there is lots of advertisements on the television and internet so people can get fed up that’s why mostly people ignore the advertisements on television they just skip the channels when the advertisements comes in front of them. Some people do not read the advertisements on newspapers and magazines.
Now a day’s Hilton Heathrow hotel doing promotion by giving offer to customers because Christmas coming they are giving offer to celebrate Christmas at Heathrow with their attractive cuisine and enjoyment traditional or bollywood themed parties. Their coordinator will do the help to customer to organise party for superb occasion.
At Hilton hotel in terms of the marketing mix model definitely the people, process and physical evidence are very important components of the marketing mix for service providers such as hotels.
Marketing strategy to use by Hilton hotels as following:
They give 20% off on advance booking on their best available rate.
They do offer bed and breakfast on the weekend package.
They give 1000 reasons to customers to love Hilton and earn thousands points on every Thursday, Friday, Saturday, Sunday, and Monday night stay.
They are offering for Christmas party at Heathrow
They are providing exclusive airport parking packages for up to 8 to 15 days. So customer can enjoy hassle free on their door step parking at London Heathrow airport
Branding- branding is a unique name and identity of the company. It is a procedure of mark and stamp to the product with identify look, design and logo etc. So customers and consumers can get idea about the features of product from the name, look, logo, mark and design. Brand name or design should be attractive, which can attract to the customers. From brand name customers can recognise the product. When they give a symbol or name to the product organisation should always keep in mind there is lots of competitor in the market. Brand should be like that which is no one can copy it easily.
Hilton hotel have very unique name. Hilton Hhonors have ten different brand which are as following: Waldorf Astoria hotels and resorts, Conrad hotels and resorts, Double tree inn, Embassy suites, Hilton garden inn, Hampton, Homewood suites, Hilton grand vacation and home 2 suites by Hilton. They have every type of hotel for example budget hotel luxurious hotel, business hotel etc. Customers can get know from the name about hotel for example Hilton hotels and resorts are quite luxurious and business class hotel. It is expensive.
Customer loyalty- it is about to encourage the customer, attract towards brand, buy the product often and in extra amount. It is about satisfaction level of customers, confidence, and their needs and wants. Organisation should build relationship with customers using e-market via email, messaging on mobile phones, so customers can stay keep in touch with them. Organisation should give points to the customers on loyalty cards. They should show to customers to care for them what are their choices and what they do not want.
Hilton hotel they have point system to attract the customers and encourage to stay with them. They have guest loyalty programme and they have membership level as following blue, silver, gold and diamond. First of all blue, which is just for enrolling. Second one is silver which is for four stays at hotel and 10 nights and then they have gold 36 nights or 16 stays and 60000 base points and the last one they have gold for 60 nights, 28 stays and 100000 base points. Customers can earn points on all their different brands in 91 countries and at nearly 3900 hotels. They can earn bonus points at airline for the same hotel stay. Customers can use their points on hotel stays, buying and receiving, on travel and transport, exchange with family and friends at dining. Customers can donate their points to supporting charities for non profit.
Network and customer relationships marketing strategies- networking is an important factor for an organisation. Stakeholders and employees with employers and staff of an organisation should inter connect with each other. Marketing take place in public relationship. For an organisation should have good and strong relation with society to fight the competition in the market. They should build strong network into the market with stakeholders. Now a day’s every organisation have customer care department to sort out the problems of customers and they have call centres as well as they have online customer care facility via internet so customers can call them or email them regarding their problems. In an organisation network and customer relationship is how does effective staff deals with customers and employers with employees.
Hilton hotels have network and customer relationship strategy to using point system and social media. Customers can earn points with them and they can use their points on lots of things with them on travel transports etc. They are using digital technology for example electronic media Customers can stay keep in touch with them using social media.
Hilton Hotel Company appreciates the value of its staff and uses internal marketing to retain them and make them feel valued. At the Hilton organisation management realises that the company’s team member added value and quality to the business. In fact it is the people working for the organisation that makes the Hilton hotels corporation such an international success. A hotel is an actual physical product, but a lot of the experience of visiting a hotel relates to the service offered by its staff to the customers. At Hilton hotel organisation management realises that staff treat customers with about same degree of respect as they themselves are treated by their employers. If staff are not treated and valued well they in turn will not respect or treat customers very well. Obviously this is very bad for an organisation. The Hilton hotel corporation invests a lot of time and money in its staff. It takes training and staff development very seriously. It involves staff in all aspects of its marketing plans and strategy so that everyone knows what is going on and how they make contribution. Organisation gives rewards to its staff for effort with awards and promotion. It includes its staff by allowing them access to extranet which is also share with its business partners. Management offers a comprehensive befits packages to its staff, including: medical, dental and vision care coverage, life accident and disability insurance, the Hilton stock purchase plan, the flexible work arrangement. Other benefits including vacation and holiday pay plus and special privileges when staff stays at Hilton hotels. At the Hilton group management really try to retain good staff and do everything possible to make working for the Hilton hotel organisation rewarding and satisfying experience.
Marketing communication activities and strategies-marketing communication is a way which is used by an organisation to change the behaviour of stakeholders towards product. They present to product into the market in such way, people can get information about the product from designing, promotion, exhibitions, advertisements, newspapers, magazines, mobile phone marketing etc. Marketing communication can be develop by direct marketing and indirect marketing. Personal selling, sales promotion, advertising, public relations these are all marketing communication. Those all tools are used for communication about product, which tells to public about the features of product. Organisation use marketing communication to achieve the market objectives and target sales. Communication is messages between one person to other person and in marketing it is between seller and buyer.
With Hilton hotel customers can stay keep in touch with them using social media.
E-marketing- e-marketing is an internet marketing, which is also called as an online marketing, web-marketing. Now a day’s every organisation use electronic technology for advertisements to gain the objectives. Technology plays a vital role for an organisation such computer based technology. Organisation create their websites, they send information about products online. Internet offers unique opportunities for organisation and customers to communicate with each others. It is a good way to build relationship with each other. Companies do promotion by direct email, advertisements on internet, by text messaging on mobile phones as well. People can know about the organisations and their manufactured goods to visit on their websites through internet. Organisation can do advertisements through social media for example: face book, twitter etc.
On other hand some people do not trust on online information. These types of people prefer to go to the organisation personally so they can get information about the product from someone face to face.
Hilton hotels and resorts have their own website so people can get easy access with them using internet. They have join in option on their webpage so people can create their account over there. Hilton hotels have account on face book as well so people can follow them using social media. They do their updates on their website and on social media regarding their discounts, offers, what’s new at hotel etc. Thus people can get information through online using internet.
Guerrilla marketing activities and strategies- this type of strategy is a weapon for marketers and it is not very expensive it is low cost strategy. Guerrilla marketing is a unusual methods of promotion. This type of marketing does not focus on sales just focus profits, on primary success. It does expect highest results from minimum resources.
But sometimes these methods of marketing represent the false image of brand, which is not good to get success for an organisation and survive for long time in the future.
Viral marketing- it is blog marketing, forum marketing, email marketing and article marketing. This type of marketing is passed from one person to another person for example messengers are used for viral marketing. Social media is the best way for viral marketing.
People can join to Hilton hotel to create an account on their website so Hilton organisation can send them direct email regarding their products, promotions, discounts, new packages etc and they can follow them using facebook and tweeter as well.
Public relationship strategies:-Public relation strategies are one of the promotional Mix (advertisement, personal selling, sales promotion, corporate image and Exhibition). According to Bill bernbach:- “People can’t believe you if they don’t know what you are saying and they can’t know what you are saying if they don’t listen to you, and they won’t listen to you if you’re not interesting”. Any news, planning, presentation, job advertisement etc organisation wants to give to public and any feedback organisation want from public different media such as speaker opportunities (conferences, seminars, public forums), trade show support (press appointments, private demos), public launch, magazines, newspaper, (articles, report), TV, internet, PR blogs (such as face book, twitter, online Pr) etc.
Public relationship is a relationship of sharing information relation to organisation not only between organisation and customers; it is also with employees, staff, consumers, general public, competitors etc. Public relation plays a very important role and its essential to make public aware and up-to-date about new policies, procedures, jobs, vacancies etc.
Hilton hotels to create public relation they promote their organisation through media news on the news papers, television, internet, magazines, articles etc. They share their information there. So people can know about them. Hilton global media centre users stand for 85 languages English, French, Spanish, Turkish, Chinese, and Japanese etc.
Segmentation marketing: segmentation of marketing is a procedure which is focus on a group people whose have common expectations, needs and wants. Market segmentation is first action to apply the strategy of marketing. When segmentation applied, then organisation recognized the groups of customers with appropriate marketing mix so as to arrangement the product , brand, place, promotion, physical evidence and environment etc.
Market segmentation aims at one or more homogeneous groups of customers and the marketers try to develop different marketing mix for each segment. The purpose of this segment is to satisfy them all. There may be different demands in different market segments. Marketers may produce higher sales in markets where they have monopolistic conditions by segmentation. The step towards developing a segmentation is to locate base for segmenting the market. There are different variables which are used for this purpose. The variables relates to consumer demographics, geographical, psychographic and behaviour. Bases of market segmentation as following:
Value based segmentation
Geographic segmentation- this segmentation focus on the area, the capital size, its majority whether town, city, or country and the (type of weather warm, cold, muggy, dry, windy) because it does matter a lot in segmenting the market on the basis of geographic segmentation. The most important benefit of this segmentation basis that is reflects physical location of the market.
Demographic segmentation- it divides the marketplace on the base of period of time, era, gender, marital status, earnings, education, culture, family unit, family life cycle, profession, religious conviction and ethnic group. Demographics as a base for segmentation is working as a proxy for finding similarity in behavioural patterns.
Psychographic segmentation- this base of segmentation is widely used by marketers. A person’s life style, social class, cultural and personality rest at his mind. But this basic instinct can be tapped by marketers when they appeal for their products. However the geographical or psychographic segmentation is mind level. It might not click for marketers.
Behavioural segmentation- here the geographical, demographical or psycho graphical boundaries do not approach jointly but become more relevant for marketing. The clients and customers are segmented on the base of their behaviour in the course of require inspiration, awareness, knowledge participation, attitudes, events, profit, user position, usage charge, loyalty rank and consumer willingness period. Behaviour segmentation is based on the consumer response to his requirements.
Value based segmentation- the promotion idea prescribes that segmentation have to the result of competition connecting the goods quality and the needs or wants of the customers or clients. The marketers have to in actuality segmenting their clients so as to separate persons who give the for the most part to their profits. The marketers are required to compute total lifetime value of their customers and discount it to arrive at the net present value.
Michael porter’s five forces: with porter’s five forces marketers can do strategic analysis of an organisation. They can find out the way how organisation attracts to different industries. Porters five forces does work as a guide to an organisation before enter to market. Michael’s five forces are as following:
Power of buyer
Power of supplier
Threats of substitute
Threats of new entry
Industry rivalry- if enter into the market is very easy it means there is very high competition. Then customers can change their mind easily to go one from another. When competition is high in the market then there is not much difference into the products which are customers getting from the companies. All competitors using same strategies, and they have same sizes of product. If situations are like this as mentioned above then it is very hard to leave the industry for an organisation because they have been already spent lots of money.
Hilton hotel has number of competitor near Heathrow which are as following Marriott hotel, Renaissance hotel, Ramada hotel, etc. They are also big organisations, but Hilton hotel has his own unique identity and popularity in the market as a luxurious hotel.
Power of supplier- to get success for an organisation bargaining power of suppliers is a most important side. Supplier provides raw material to an organisation. If they are the only supplier for firm and there is no power of substitute of that raw material and there is no alternative option, they can refuse to provide raw material to an organisation. In that case supplier has much power.
Power of buyers- customers can change their mind easily if they have another offer in same price and they go from one to another to get the product. Customers have the power to give pressure to the firm to change the price of product. Power of buyers come when there is not much difference between the product and they can get same product with low price. When customers buy the product they are very possessive about price of the product and they do comparison as well.
Mostly business people, couples, and families are customers of Hilton hotel.
Threats of substitute- if organisation provides such products which is already have in the market so there is threat of substitute is high. Because customers have another option. They can get another product.
Threats of new entry- for an organisation to enter into new market are a bit risky because there are some barriers for entrance but for big organisation it is not much risky. When an organisation enters into the market looks at following points: do they earn profit or how fast, will government give them approval to do business, do they have enough supplier for outputs of their products.
As we know around Heathrow airport there lives mostly Asian community Indians, Pakistanis, Bangladeshis etc. it is suggested to Hilton Heathrow hotel they should give them some discounts and offers on their special festivals and occasions. For example to Muslims on their special festival Eid they should offer them discounts on their parties. To Indians they should also give offers and discounts on their special occasion diwali like Christmas they offer special packages and discount for special event.
As everyone knows hospitality is a huge industry in the market and Hilton hotels have their own unique name and identity in the market. According to the above mentioned strategies in the assignment marketing mix, branding, loyalty programmes, network and customer relationship marketing strategy, marketing communication activities and strategy, e-marketing, public relations, guerrilla and viral marketing, marketing segmentation and Micheal porter’s five forces, which were applying to the Hilton hotel they are doing best things to beat the competitors and they are doing their promotion in best ways such as their loyalty programmes. Hilton hotel is a luxurious and expensive and they mostly attract to business people and families so mostly customers of Hilton hotels are business people, families, couples and this hotel doing everything to do their best in the market. They are using digital technologies for example electronic media according to the demand of modern era.
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