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Hilton Marketing Project

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Hilton Marketing Project

  1. 1. By: Sandy Cisneros, Debbie Orr Chandler, & Alexandra Viera
  2. 2. HISTORY  Hilton Hotels & Resorts was founded by Conrad Hilton in 1919  Mobley Hotel was the first property bought by Hilton in Cisco, Texas  The first hotel to bear the Hilton name was the Dallas Hilton in 1925  Hilton Hotels became the first coast-to-coast hotel chain in the US in 1943
  3. 3. MOBLEY HOTEL NOW A MUSEUM
  4. 4. CONRAD HILTON DALLAS HILTON
  5. 5. FACTS  There are 4,112 Hilton Branded Hotels across the world in 91 countries across 6 continents.  Hilton hotels are either owned by, managed by, or franchised to independent operators by Hilton Worldwide.
  6. 6. HILTON BRANDS  Luxury: Conrad Hotels & Resorts, Waldorf Astoria Hotels and Resorts, Curio – A Collection by Hilton
  7. 7. HILTON BRANDS CONT.  Full Service: Hilton Hotels & Resorts, DoubleTree by Hilton, Embassy Suites
  8. 8. HILTON BRANDS CONT.  Select Service: Hilton Garden Inn, Hampton Inn, Hampton Inn & Suites
  9. 9. HILTON BRANDS CONT.  Extended Stay Suites: Homewood Suites by Hilton, Home2 Suites by Hilton  Timeshare: Hilton Grand Vacations
  10. 10. HILTON HHONORS REWARDS PROGRAM  Loyalty program where guest accumulate points from staying at Hilton brands  Largest rewards program with over 30 million members  Partnered with major airlines for guest to accumulate both points for free hotel nights and miles for free flights
  11. 11. HHONORS TIERS  Blue: obtained upon enrollment  Silver: obtained after 4 stays or 10 nights  Gold: obtained after 20 stays, 40 nights or 75,000 points  Diamond: obtained after 30 stays, 60 nights, or 120,000 points
  12. 12. HILTON AND MARKETING  “Stay Hilton, Go Everywhere” a marketing message that states a large global brand  Hilton operates hotels and other related services in accommodation, gambling, and entertainment areas  Revenue gained from hotel rooms, restaurants, bars, smaller shops, spa, laundry service, travel desk, business center and banquet halls
  13. 13. HILTONS MISSION  “Our goal us to maximize exposure and increase revenue streams both online and offline. These teams work closely together to implement groundbreaking initiatives with the latest market-leading tool kits. Our local, national and global marketing strategies are just the beginning of our commitment to increasing your hotel’s profitability.”
  14. 14. HILTON MARKETING LEADERS  Jeff Hilton – Chief Marketing Officer, Co- founder  Gail Frankoski – Director of Marketing  Lisa Openshaw – Media Buyer
  15. 15. HILTON’S COMPETITIVE SET  “ The key to our competitive advantage is that we have a lot of pieces that work well together. Since we are the only company that has the same technology platform and distribution footprint throughout all the brands, we can leverage our strengths consistency across the entire system. Fundamentally, we agree that unless we do something consistently across a lot of our hotels and there is sufficient repetition and reinforcement, it does not matter that you have superstar hotels- that’s the brand promise.”
  16. 16. HILTON’S DIFFERENTIATION STRATEGY  Providing very high-quality guest experiences that appeal to both business and personal travel  Based upon persuading customers that a product is superior in some way to that offered by competitors  Uniqueness can be achieved through service innovations, superior service, creative advertisement, better supplier relationship leading to better services, and many more
  17. 17. HILTON’S TARGET MARKET  Geographic Segmentation – mainly focuses on the local preferences and the location  Demographic Segmentation – represents middle and senior aged professionals with high level of income belonging to upper social class who pursue luxury lifestyle  Psychographic Segmentation – targeting ambitious individuals who would like to express their perceived high status and achievements by staying in 5 star rooms for premium price  Benefits Segmentations – perceived or real benefits offered by Hilton to potential and existing customers include sense of achievement, a high status in society and luxury
  18. 18. CUSTOMER SERVICE  “ Highest in Guest Satisfaction Among Upscale Hotel Chains”  Awarded highest ranking in the J.D. Power 2014 North America Hotel Guest Satisfaction Index Study
  19. 19. HILTON’S PROMISE  “ We promise to do whatever it takes to ensure you’re satisfied, or you don’t pay. You can count on us. GUARANTEED. We are committed to providing an excellent hotel experience for every guest, every time.”  “Our Best Rates Guarantee assures you receive the best rates when you book directly with us. If you find a lower publicly available rate anywhere else, we will match that rate plus give you and additional $50 back!”
  20. 20. GLOBALLY MOTIVATED  Every country is different, Hilton Regional Marketing teams execute orchestrated, regionally relevant, go-to-market strategies across key segments that drive business to Hilton properties  Conduct business in 42 languages serving 25,000 customers in 91 countries from 34 offices located around the globe  Hilton focuses on being the most global, integrated, and relevant sales force in the industry, relentlessly driven to grow market share
  21. 21. HILTON HOTEL COMPETITORS  Know what kind of marketing will be effective or what pricing strategies you want to use for your products or services.  Know what kind of marketing will be effective or what pricing strategies you want to use for your products or services.  How good their annual sales are comparing to yours.  Hilton competes with global players, such as Starwood Hotels & Resorts Worldwide, Marriott International, Choice Hotels International (CHH), Hyatt Corporation, the France-based ACCOR Group, and Intercontinental Hotels.  Hilton already has a strong presence in the U.S and is expanding its global operations through acquisitions.
  22. 22. HILTON HOTEL TARGET MARKET  Hilton Hotels Corporation (NYSE:HLT) is one of the leading hotel and leisure companies in the world. It is primarily involved in the management and development of hotels across the globe.  Hilton has recently changed its growth strategy, and it now focuses on spreading its operations through franchisees.  Hilton target upscale business travelers, the impact of increasing airfares will not be too significant for Hilton.
  23. 23. HILTON HOTEL TARGET MARKET CONT.  Hilton need to apply hotel revenue management to its market segmentation, this would help the Hilton to target and market to a variety of consumer groups with different behavior with an offer that match their needs an budget level.  Hilton should be able to identify the length of time those customers stay for the group business.  Hilton should be able to identify the length of time those customers stay for the different segment.
  24. 24. HILTON TARGET MARKET CONT.  Hilton could have people working for them who speak more than one language in order to cater to people all over the world such as France, China and Spain etc.  Hilton should target more of the transient segment which is made up of individual business and leisure travelers which is a key for the hotel.  Hilton has to make sure that their employees are well trained because that is the key to the success of the company, having great customer service.  Pricing is also important in strategy when selling your product in order to attract customers. They have to make sure that they stay in the margin close to their competitors.
  25. 25. HILTON MARKETING VISION  One of the most important effects in having a successful marketing is the company vision.  Hilton has to make sure that your vision is focusing on their business over all business plans, with a specific focus on the marketing of their products and services.  Hilton’s occupancy rates and revenues per available room have also increased continuously over the last few years, indicating that the company has been able to sell its hotels/rooms well.
  26. 26. HILTON STRENGTH AND WEAKNESS  A SWOT analysis is an organized planning method used to evaluate the strengths, weaknesses, opportunities, and threats involved in a project or in a business project.  A strong supply chain helps Hilton hotels obtain the right resources from suppliers and delivery the right product to customers in a timely manner.  Strong management can help Hilton hotels reach its potential by utilizing strengths and eliminating weaknesses.  Their great technology allows them to better meet the needs of their customers in ways that competitors can’t imitate.
  27. 27. HILTON STRENGTH AND WEAKNESS CONT.  Customers are loyal to them so maybe instead of only targeting one customer they should make sure they target new customers in order to grow their business.  Hilton do have a high brand recognition, technical innovations to improve customer experiences and constant upgrade of business processes, good employee retention, around 540 hotels in over 78 countries, they have been in the industry for 93 years now making the real experts at what they do and good reputation in the market.  In terms of their weaknesses Hilton hotel may be two narrowly focused making it vulnerable to a downturn in the global economy and other world-wide catastrophes that could limit global travel.  Hilton hotel have limited market share in spite of good brand recall. Their operations are affected globally due to different Government policies and parameters.
  28. 28. SWOT ANALYSIS: OPPORTUNITIES  The opportunities sector is the external factors that the company may be able to exploit to its advantages.  An area of need that a company can perform profitability  Positive outcomes
  29. 29. OPPORTUNITIES FOR HILTON HOTELS  Dynamic growth in emerging markets  Emerging in different markets around the world that are up and coming  Examples: India, China  Technology Revolution  Having up to date technology In the hotels will aid in customer service  New technology can help the hotels market themselves to new customers
  30. 30. OPPORTUNITIES FOR HILTON HOTELS CONT.  Going Green  Customers will be attracted to stay at the hotels  Number of customers will increase significantly  Operation prices will decrease and the prices for customers will decrease as well.  Hilton hotels will be saving money, yet they will still be performing profitability
  31. 31. SWOT ANALYSIS: THREATS  Threats are current and emerging external factors that may challenge the company’s performance.  Threats are challenges posed by unfavorable trends or developments that can lead to the absence of defensive marketing action, which can lead to sales and profit deterioration.  Negative outcomes
  32. 32. THREATS FOR HILTON HOTELS  Competition amongst luxury brand hotels  New hotels are always opening up, therefore Hilton hotels will have competitions which they must pay close attention to  Hilton hotels should learn about the competing hotels’ prices and amenities.  Economic and Political Turbulence  When the economy is down, the amount of guest will decrease meaning that the income of Hilton hotels will decrease.  It is important to be up to date with the news about the economy and politics all around the world.
  33. 33. HILTON HOTEL’S APPROACH TO CUSTOMER SERVICE  “ Our commitment to guests: to ensure every guest feels cared for, valued, and respected”  Hilton Hotels cares about their customers and the experience they have during their stay.  Awards Earned:  2009: Stevies Award for best customer service team and best customer service complaint team  2010: Stevies Award for favorite customer service team  2011: American Customer Satisfaction Index gave Hilton Worldwide the highest average satisfaction score. (3 consecutive years)
  34. 34. FUTURE MARKETING METHODS  Going Completely Green  Changing everything in the hotels to eco friendly: bedding, furniture, electricity, technology, food  This will bring in new customers  The prices of guestrooms will decrease  The operational costs for Hilton will decrease  They will make profit because they will have an increase in customers
  35. 35. FUTURE MARKETING METHODS CONT.  Complimentary Meal and Wine  Having a program that gives customers a complimentary meal and bottle of wine when they stay at the hotel will bring in customers. When customers are receiving something complimentary they are happy and will most likely come back again if they enjoyed it and the service was good. It is a good incentive for customers. The hotel will be spending extra but it will bring back customers and business will increase.

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