Sales,Promotion, and Operations at Hilton International
Sales,Promotion, and Operations at Hilton International
HiltonInternational is a renowned global hotels and resorts organisationwith numerous branches in over 4,000 hotels spanning 91 countries. Ithouses international brands like Conrad Hotels & Resorts, HamptonInn, Embassy Suites Hotels, Waldorf Astoria Hotels and Resorts,Home2Suites by Hilton, Doubletree, Hilton Garden Inn, Homewood Suitesby Hilton, and Hilton Grand Vacations (Hilton Worldwide, 2014).Hilton International boasts remarkable brand awareness in all facetsof the healthy leisure and tourism global industry like home-basedleisure, tourism information, travel agencies, online travelservices, visit attractions, tour operators, countryside recreationand most importantly, accommodation and catering. This paper presentsa succinct analysis of the entity’s aims and objectives,marketplace, pricing strategies, marketing strategy effectiveness,and the manner in which technological advances have transformed theorganisation.
Activity1: Objectives and Pricing Strategies of Hilton
Thisorganisation is a dominant private sector participant whose sole aimis to sustain profitability through diversified, distinguished, anddifferentiated brands or services. The objective and aims for suchdiversity in service differentiation looks to satisfy the uniquenessof individual customer expectations thereby building brand loyalty(Hilton Worldwide, 2014). Because of its dynamism and innovativeness,the firm has placed sustainable and eco-friendly organisationalprocesses as paramount to its core fabric.
Towardssupporting portfolio commitments, it is further appraising engagementand educational programs for team members as well as brands throughcentralised web content, online learning, and a variety of pro-activetraining modules (Hilton Worldwide, 2014). To create and ensuregreater emphasis on design and construction standards and reviewingbrand operations, all divisions conform to external/internal bestpractices protocols adopted, transparent and shared globally.
PlacesUsed to Sell Products and Services
HiltonWorldwide has major operations in the US and in the UK, which areessentially nations with mature leisure and tourism industries. Thispaper focuses on the UK travel and tourism industry as a place wherethe Hilton brand sells it rich product and services. It is criticalto point out that the tourism and travel industry is a fundamentalcomponent of the UK national economy contributing to nearly 7% of itsgross domestic product (Ahsan, Qazi, & Syed, 2014). More so, forHilton Worldwide, the UK represents its second most significantmarket. Therefore, the UK market remains a critical focal point forHilton Worldwide’s core strategy.
TheHilton brand caters for numerous business segments as well asconsumer types (Ahsan et al., 2014). The luxury segment housesflagship brands like the Conrad hotels and Resorts and the WaldorfAstoria Hotels and Resorts. The products and services available inthis segment target consumers desiring the highest possible standardsin service and luxury. For instance, consumers can enjoy high-endcuisines, 24-hour service, golf courses, fitness, and spa facilities,as well as tailor suited business facilities. The second businesssegment offers full service brands with products and servicesincluding retail facilities, banquets, food and beverage, gift shops,swimming pools as well as restaurants and lounges (Hilton Worldwide,2014). Double Tree, Hilton Hotels and Resorts, Curio and EmbassySuites Hotels offer these products and services.
Thefocussed service brand-segment includes Home 2 Suites, HomewoodSuites, Hampton Inn, and the Hilton Garden Inn (Hilton Worldwide2014). Consumers can access basic facilities, as well as reasonablypriced food and beverage facilities. The Home 2 Suites and HomewoodSuites both avail home like comforts like laundry services and petfriendly accommodations with products designed to last up to a fewmonths. The Timeshare brand is the fourth sector that includes theHilton Grand Vacation, which offers top-end amenities and services todesignate members (Ahsan et al., 2014). The products and servicesavailed herein are such that the timeshare type of ownership allowsmultiple parties with agreed upon rights to utilise properties for aspecified period.
HiltonWorldwide embraces conventional, contemporary, and emergingdistribution channels (Chong & Verma, 2013). Conventionalchannels such as offline media continue to play a significant role inenabling clients to acquire specific destination information.However, contemporary online channels have significantly transformedthe market place and as such, the entity has fully embraced the novelavenues to realise greater customer communication towards achievingexquisite clientele experiences. Emerging channels for distributionhave offered Hilton Worldwide to be innovative towards penetratinguntapped as well as existing markets while also positioning itself ina manner consistent with brand persona.
HiltonWorldwide for extensive periods in its history has depended on luxuryand high-end luxury products and services. However, its foray intothe international tourism and leisure industry has informed itscurrent pricing strategy, which spans for vast categories. Thesecategories include premium pricing, skimming pricing, penetrationpricing and economy pricing (Dudovskiy, 2016). Its pricing strategythus, portrays diversity in its products and services to not onlycater for the elite consumers but also look to capitalise on lowbudget consumer segments. The latter, which when pooled togetherpresent a formidable force towards greater profitability. Penetration pricing as a strategy looks to make headways intountapped markets by availing high-end products but in the reasonablepricing range (Dudovskiy, 2016). The skimming pricing strategy worksto induce segmentation relative to brand awareness thereforeresulting in pricing that is comparatively higher than offered bycompetitors for similar services and products. Regarding premiumpricing, Hilton Worldwide looks to offer services and products oftopmost quality and class offering consumers with intangible gainslike high-class luxury, elite status, and excellence (Dudovskiy,2016). For such services and products as well as other accruingfeatures allows the leisure and tourism entity to charge premiumprices.
Activity2: Target Markets and Effectiveness of the Promotional Techniques
Theglobal marketing environment is inherently knowledge driven such thatfirms able to acquire, analyse and utilise internal and externalinformation is in most instances able to remain ahead of competition(Chong & Verma, 2013). Hilton Worldwide has been at the fore ofemploying target market information towards understanding externaland internal operating settings, how to optimise such information forshort and longer-term business sustainability as well asprofitability. Hilton Worldwide acquires target market informationthrough objective market research frameworks. Such frameworks look toidentify critically, the degree of customer satisfaction gained fromfeedback on experiences gained (Chong & Verma, 2013). Theframeworks also work to detect distinct service characteristics,which result in favourable or undesirable customer experiences.Actualisation of marketing research aims informs policymakers andstrategists towards incorporating contributions translating to HiltonWorldwide’s longer-term growth prospects. The information derivedconcerning target markets not only strengthens customer satisfactionlevels as well as enabling the entity to eliminate products andservices resulting in customer dissatisfaction.
Effectivenessof Promotional Techniques and Materials and Suggested Improvements
HiltonWorldwide favours four elements towards promoting and appraisingbrand awareness. The firm utilizes personal selling, directmarketing, sales promotion, public relations, and advertising. Giventhat the tourism and travel industry in is most cases prone seasonalfalls in customer numbers, sales promotions serve the firm well inaccruing short-term advantages. The occasional manner with which itis employed looks to not to compromise brand value as cheaper pricingcan adversely influence exclusivity of products and services (Chong &Verma, 2013). Via the Honours rewards system as well as discountvouchers offered on its website, sales promotion looks to actualisefull capacity thereby appraising revenue collection.
Thenature of Hilton Worldwide’s operations does not support personalselling to a great extent as it is not only expensive to apply butalso reaches out to relatively lower volumes of perspective clients(Chong & Verma, 2013). The organisation however considers itvital for forming and more so, maintaining longer-term relationshipswith clients. Stakeholders in the large entity’s public relationsinclude employees, customers, and private public partnerships withother likeminded organisations. Some of methods used include regularoffline as well as online press releases and communications bysending to stakeholders (Chong & Verma, 2013). Each of thediverse brands under the Hilton Worldwide banner runs independentadvertising campaigns though all have to do so under directsupervision of the parent brand. Through advertisement, the entityemploys various advertising elements like popular magazines andnewspapers targeting senior management professionals such as theFinancial Times, the Economist, Fortune, and Forbes.
RealisticImprovements to Promotional Techniques and Justification
Asmuch as personal selling is not a key aspect of Hilton Worldwide’spromotional techniques, it has the potential to reach out aparticular consumer base that associates well with the luxuriousservices and products offered (Chong & Verma, 2013). This isexpected to work satisfactorily in mature markets where the entityhas created a distinct niche in the tourism and leisure industry suchas in the Chinese and Indian markets. Using personal selling willcritically reach out to the growing upper middle class, upper class,and super rich consumer segments in the populous countries. More so,it will also enable the unique development of unique services andproducts, especially in regards to cultural orientations. Personalselling therefore emerges as justified promotional technique tocreate, nurture and sustain distinctive customer segments.
Activity3: Promotional Materials
HiltonHotel promotional flyer
Free membership for spouse. Late check-out any day of the month
Dedicated service line 24/7. Express check-in or out via call or video
Free health and gym services.Access to seasonal and discounted travel offers
Contact: Tel +1 703 883 1000/Local reservation offices
GET A HILTON HHONOURS REWARD TODAY!!!
Accumulate points by staying at Hilton and enjoy free stays in over 2,500 HHonours Hotels
Earn Merchandise loyalties and rewards from retailers
Available to married couples at least 40 years old
Get discounts of over 30% in designated restaurants
HiltonHotel sales letter/email
7930 Jones Branch Drive
McLean, Virginia 22102
Tel +1 703 883 1000/Local reservation offices
Hilton Deluxe and Gold HHonours
The HHonours® membership offers a range of resort, travel, and hotel opportunities. Be assured that at staying at Hilton, you receive the best that the world of hospitality has to offer. With an HHonours membership, you can get free check-in for your partner as well as a discounted room for friends and family. Take note that as a member, you can checkout or in at any time, obtain discounts and free facilities at gyms and hotels, buy merchandise at a discount in selected retailers, and access seasonal travel offers.
You get an American Express card, rewards, signature cards
The membership fees are now discounted at 30%. Become an HHonours member while the offer lasts. For more information, call your local representative
TheTargeted Market and the Effectiveness of the Flyers and Email
Hiltontargets its customers based on geography, demography, and benefits.Geographic segmentation focuses on local or locality preferenceswhile demographic centres on senior and middle professionals earninghigh incomes or belonging to the upper (upper-middle) social class.Individuals targeted based on benefits have an attachment to theorganisation because of the real or perceived welfares they obtain,for example, luxury, a high status, and a sense of attainment. Inthis regard, the designed promotional material aims at middle orsenior couples who are likely to express their status andachievements. The developed flyer and email targets individuals whohave the desire for status, money, and appearance as well as thosewho travel a lot usually in different countries. The materials aredesigned as marketing resources to attract high-income earners whowill check in a hotel at least once a week. The HHonours is a loyaltyprogram created to engage clients. It is intended to value customersand make them part of the Hilton fraternity. The firm understandsthat most business traveller will return. In this regard, thedesigned email/letter and flyer utilize targeted, event-drive clientmessaging to offer diverse and comprehensive awards based on aclient’s time of stay and specific activity. The materials will begiven to clients when they check in and will be placed in theirrooms. Furthermore, regulars will receive an email from the firm.However, the resources are only targeted towards clients who havestayed in any of the Hilton’s hotel for at least ten times. Thismeans that the organisation is targeting members with the flyers.
Clientcommunication is a significant part of any successful marketingapproach. Emails and flyers are useful approaches, especially toexisting clients since they allow a firm to introduce new products tothe market. Any promotional strategy utilized by a company aims toenhance the interaction between clients and the provided service orproduct (Takahashi,Itaya, Yagura, Miyatake, Takeuchi, & Matsumura, 2016).Leaflets persuade clients and tempt them to purchase a product,particularly a new one. It is imperative to note that a flyer has aquick response, which will allow Hilton to provide the designedproduct. On the other hand, the company is targeting clients fromdifferent nations hence, the use of emails. A letter or email willreach the intended client without any delay and since the company ismarketing the HHonours product to existing members, it means almost95% of the targeted market will read the email. Although theinformation in the email has been presented effectively, the flyerlacks clarity and has small black fonts, which might fail to appealeffectively. Furthermore, the leaflet has been drawn in a whitepaper, which is hard to read from afar.
Improvementsto the Promotional Materials
Theflyers used should have concise but stylistic design and languagedesign. Takahashiet al. (2016)assert that compositional features of a marketing resource affect thescale and client traffic. This means that if the company wants toappeal to a large pool of customers, it should draw the flyers in anartistic manner. Moreover, the means of conveyance affects the reachof the clients, which shows that Hilton should distribute thematerials in a personalized manner. In identifying the market, thecompany has used its client list thus, it will manage to reach thedesired population easily and quickly. The use of billboards,commercials, and posters will be too inhibitive to the company, asthey will not be focused to the target population. In this regard,the use of flyers and emails will only reach the intended clientbase. Furthermore, the upper or upper-middle class will mostly likelyignore commercials or adverts in newspapers and magazines. This meansthat the company should integrate direct marketing or personalselling to the already identified promotional strategy to reach moreclients. However, the new forms of marketing should only targetcustomers within the premises of Hilton rather than selling theproduct to clients in their offices.
Activity4: Technological Changes and Effect
Developmentof Hilton Because of Technological Change
HiltonWorldwide has indeed not shied away from adopting novel technologiesas and when these emerge. Through its leadership, the global firm hasembraced mobile, analytics, and digital innovations in tandem withthe Internet of Things (IOT) to inform its overall strategicmarketing direction (Hilton Worldwide, 2014). Given that the firmprides itself in according clients with spectacular guestexperiences, it understands that conforming to the more demanding aswell as digitally connected clients will inform operational progressnow and well into the future.
Theentity has also been proactively engaged in the green economy lookingto innovatively employ renewable energies, water use reduction,decomposition systems for food waste and more importantly reducingits overall carbon footprint (Hilton Worldwide, 2014). Towards asustainable approach for embracing technology and technology changes,the entity has also engaged in a unique guest education initiative toenable it sustainable attain eco-friendly operations.
Effectivenessin Adoption of Technology and Technological Changes
Theorganisation has captured the use of technology and technologychanges in a manner that has worked to effectively offer clients withdistinctive user experiences. For instance, clients are currentlyable to check into Hilton Worldwide facilities through personaltechnology devices such as computers, tablets, and mobile devices(Hilton Worldwide, 2014). The outcome has been guests attainingexceptional control and choice relative to entire hotel stays.Customers are now in a position to select rooms, present specialrequest as well as purchase upgrades via digital platforms. This hasserved to further supplement hotel booking from the previous onlinebooking systems and social media applications use (Chong & Verma,2013). More importantly, the adoption of technology and technologicalchanges has appraised its capacities to employ innovation as avehicle for ensuring customers acquires unprecedented userexperiences throughout all its facilities.
HiltonWorldwide is well placed to continue with its impressive globalpresence. As this paper has documented, it has essentiallydiversified services and products for tourism and leisure clientelefrom all over the world. Through its pricing strategies, it has notonly been able to penetrate new markets like China and other Asiancountries but also employed skimming to match to customerexpectations. However, it reaches such decisions via intricate targetmarket information acquiring mechanisms towards criticallyunderstanding which operations to build on as well as those servicesand products that erode desirable consumer experiences. Technologyand technological changes have worked particularly well to make aniche in optimizing guest experiences. Eco-friendly practices havenot only enabled it to reduce overall operational costs but served toappraise customer experiences and by extension translated into asustainable CSR development.
Ahsan,L., Qazi, B., & and Syed, S. (2014). Strategicmanagement of multinational companies: Case of Hilton.MunichPersonal RePEc Archive.Retrieved fromhttps://mpra.ub.uni-muenchen.de/58366/1/MPRA_paper_58366.pdf
Chong,H., & Verma, R. (2013). Hotelsustainability: Financial analysis shines a cautious green light.TheCentre for Hospitality Research,14(11),6-21.
Dudovskiy,J. (2016). Hilton Hotels marketing mix – 7ps of marketing.Research-Methodology.Retrievedfrom http://research-methodology.net/hilton-hotels-marketing-mix/
HiltonWorldwide. (2014). Travel with purpose: corporate responsibilityreport executive summary. HiltonWorldwide.Retrieved fromhttp://cr.hilton.com/download/2011_Hilton_CR_Report.pdf
Takahashi,M., Itaya, S., Yagura, M., Miyatake, Y., Takeuchi, H., &Matsumura, N. (2016). Shikakeological Approaches for PromotionalFlyers Distribution. PosterProceedings,13.
Planfor all the Activities
1. Identify the firm
2. Research details about the company (Hilton)
3. Gather resources and materials to reinforce the data
1. Explore the aims, goals, statements, mission, and objectives of Hilton
2. Identify the pricing strategies and distribution channels
3. Write the introductory parts and the firm’s objectives in line to the topic
1. Research details of activity 2 including target markets, placement, and improvements to promotional materials
1. Research on the benefits of flyers
2. Write on the possible enhancements to the flyer
1. Design a flyer and an email to be utilized in promoting Hilton’s HHonours reward
2. Evaluate the designed materials
4. Discuss the effects that technological change has had on Hilton
5. Illustrate the role of technology on the effectiveness of the services provided by Hilton
1. Prepare ground for the final paper
2. Write down the references to use
1. Proofread the draft
2. Recheck the materials
1. Complete the project