Select a hospitality, recreation and/or tourism business/organization. The more the web/social media presence, the better.
The company that I have chosen is Hilton Worldwide Holdings Inc. which is previously known as Hilton Hotels Corporation. The company manages a large number of resorts and hotels in the world.
Briefly describe the marketing mix. (1-3 sentences for each)
The products of Hilton are designed to meet the needs of each customer to provide them with a unique experience. The clients can have different services according to their demands at additional costs in the hotels while they can also have transport facilities from airport to hotels.
There are various mediums through which clients can receive the services of the company. They can book themselves rooms online via their website by locating the hotel franchise in their locality around the world.
All the products and services of the hotel are of premium quality, but the company does have some price categories according to the needs of the different customers. These price categories are based on the quality of comfort, level of exclusivity and service targeting the upper-income segment of the society.
The promotion strategy of the company includes the advertisement in media and other selected locations while it also participates in various trade exhibitions in different regions of the world where the company’s representatives sell its products to potential clients. The company also join hands with different airlines and tour promoters to market its products. To establish a strong relationship with the client and make them use its services again and again, the company provides them with excellent customer support service.
Evaluate at least one print and one video ad (TV commercial, infomercial, webspot, etc.) about your business (approx. 500-600 words).
Based on these ads, answer the following:
Who is the target market (sociodemographic, lifestyle, or personality characteristics)? Are there multiple segments? (2-3 sentences)
The target customers of the company are the uppermost people in the society who have great value for multiculturalism. Therefore, the company is offering services that are entirely based on the individual needs and preferences of the clients. These services are marketed around tourists, business clients, actors, conference guests and musicians. These clients have different needs, and the hotel staff is trained to meet all the varying needs of these versatile customers. In this regard, a particular staff member will be assigned to each guest to provide him premium personalized service. And this is exactly represented in the ads.
How are the products differentiated to serve different segments/tastes/styles/choices? (1-2 sentences)
Hilton only targets those individuals who like luxury lifestyle at premium costs of offered products and services. In this regard, the customer segmentation of the company is based on their demography, psychography, behavior and benefits. So, all the products of the company are differentiated based on the market segmentation and people’s age, lifestyle, perception about the brand, and their specific needs.
How do the ads address the four characteristics of HRT services (intangibility, perishability, inseparability, and variability)? (3-4 sentences)
The first characteristic of HRT services is intangibility which means that the services cannot be touched but can only felt and experienced. The second characteristic is inseparability, which means that the services can be separated from the service provider and they are always observed together. The third characteristic is perishability, which relates to the timeframe of the service delivery. This means that services cannot be stored like products for any time use. Lastly, the heterogeneity characteristic describes the variations in the services each time they are provided to customers because clients always have different feelings about them no matter how identical they are. As seen from the ads, they address all these four characteristics to develop a sense of unique experience among its customers and urge them to use its services.
How is the brand positioned: what are the associations the business wants to establish (concepts, thoughts, feelings, notions, etc. that the brand wants to be associated with)? (3-4 sentences)
The positioning strategy of the company varies significantly across various countries and based and based on the different requirements of the clients it has 13 brands offering different services. In the ads, it can be observed that the brand company positions itself in the positioning category of luxury and focused service under the name of Waldorf Astoria and Hilton Garden Inn. Some other brand positioning includes “lifestyle”, “focused service”, “all suits”, and “vacation ownership”.
- Does the brand positioning and image
match with their target market? Why is it a good match? What would you change and why? (3-4 sentences)
The brand positioning exactly matches with the target market as all the aspects of the luxurious hotels as per the demands of the customers are fully met. Hilton always builds hotels at locations that are popular with the target clients and for which they are willing to pay premium prices. However, with the increasing number of middle-class incomes earns, the company can target them as well because they can contribute significantly to the overall customer base of the company.
Create a SWOT Matrix.
- Fill in the 2 x 2 SWOT Matrix (SWOT: Strengths, Weaknesses, Opportunities, Threats). Write at least three clear bullet points/sentences in each box.
Create and explain a TOWS (reverse SWOT) strategy matrix. Use directly the last four pages of this document to fill in your answers (approx. 100-150 words per strategy).
|Opportunities||The company can increase its customer base by implementing an effective communication strategy. And for this company can use modern digital marketing tactics to direct consumers to its website and book themselves the company’s services. By utilizing effective digital marketing tools, a company can also attract customers based on its newly designed environmentally friendly products. However, the prices of the products should also be kept lower to successfully attract the middle-class market. When the customer base of the company will increase by implementing these strategies, it will be able to increase its global market share. This will ensure the ultimate growth and expansion of the business.||Customers always look for discounts on online sites and therefore the company can increase the sales of its services by providing online discounts. In this regard, the company can use a pricing strategy to attract a large volume of online customers.
Moreover, the company can also finance its rented property to convert it into sole ownership and prevent direct costs of the business operations. Similarly, to decrease employee turnover and improve their performance, it can offer various packages and benefits.
|Threats||A strong distribution strategy can ensure the successful entry of the company into the new market. This will also enable it to address the particular needs of the customers in the new markets and earn their trust. Similarly, the company can also invest in intellectual property rights using its strong financial position to compete with the increasing number of competitors in the market. It can further establish new innovative teams who look for able fuel alternatives to reduce the cost of operations. Finally, since the brand already has a strong position in the market, it can chare its customers high to cover all the cost of its new operations.||The increased investment in research and development as per the product development strategy will make the company more efficient in competing with the new entrants which offer different alternative products. And when the company also provides equal growth opportunities to employees, it will make sure that they do not join the competitors. Regarding customers who will now have the alternative products at a cheaper price will become an asset of the company and pave its ways towards increased share in the global market.|