Strategies and public relations of Hilton

Strategies and public relations of Hilton In todays vital range of competitive business environment there has been a shift from traditional marketing towards more varied approaches. In particular there has been a change from transactional to relationship management in marketing. I certify that this assignment is my own work, based on my personal study and or research. I have acknowledged all material and sources used in the preparation of this assignment, including any material generated in the course of my employment. I have not copied in part, or otherwise plagiarised, the work of other students. I have read and I understand the criteria used for assessment. The assignment is within the word and page limits specified in the unit outline. In other words, the use of any material in this assignment does not infringe the intellectual property/copyright of a third party. I did very hard work for this assignment and full concentrate on my work. I did try to do my best. Hilton worldwide is the leading global hospitality company, spanning the lodging sector from luxurious full-service hotels and resorts to extended -stay suites and mid priced hotels. For 90 years, Hilton worldwide has been offering business and leisure travellers the finest in accommodations, service, amenities and value. The company is dedicated to continuing its tradition of providing exceptional guest experiences across its global brands. Its brands care comprised of its more than 3,300 hotels in 77 countries and include Waldorf Astoria hotels and resorts, Conrad hotels and resorts, Hilton double tree, Embassy suite hotels, Hilton garden Inn, Hampton Inn and suites, Homewood suites by Hilton and Hilton Grand vacations. The company also manages the world-class guest reward program Hilton HHonors. Hilton Hotels properties are renowned for their convenient and strategic locations within major countries throughout the world. Also synonymous with the brand are the high level of persona l service guest receive, and the extensive range of comprehensive business facilities available in luxurious settings. This hotel is built in 1963 as a showcase for international guests; this stunning New York City hotel has warmly welcomed families visiting the worlds fair, representatives attending political conventions and certain Fab Faur from England, coming to appear on the Ed Sullivan Show. With a multilingual staff of professionals, a wide choice of elegantly appointed accommodations, this extraordinary NYC hotel looks forward to continuing its legacy of service and guest satisfaction. MARKETING The marketing function is the study of market forces and factors and the development of a companys position to optimize its benefit from them. It is all about getting the right product. There is a difference between sales and marketing, marketing people deal with markets that contain many potential customers, and they talk to them as a group. Whereas profit or service to the customer at the right place at the right time. Marketing is much more than just advertising or PR. Its a way of doing things that starts with a potential customer and ends up with a profit. In the middle are competitors who are after the same customers and same profits. In the business as a marketing person, its necessary to use some proven tools and techniques to attack the competition and gain the customers. Marketing is the process where a company satisfies customer needs with a product and service at a price that generates a salespeople deal with a few customers and talk to them one at a time. According to me Marketing is a body of knowledge concerned with the relationship of a business to the marketplace. This market place is made up of customers, potential customers, competitors, suppliers, distribution channels, communication media and government regulations. It is a key of discipline that enables the producers of goods and services to interpret customer wants, needs and desires and match, or exceed them, in delivery to their target consumers. Marketing is also a mixture of all the activities of advertising promotion, publicity, deciding the look and feel of the product, how it will be sold and send to the consumer etc .All of these are the different parts of the marketing, they are not marketing. According to Philip Kotler (2006), Marketing is the social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. Eric Davies and Barry Davies (2 edition), Institute of Management, Successful Marketing in a week, Marketing is the identification and profitable satisfaction of customers needs'. The Charted Institute of Marketing, Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably. We define marketing management as the analysis, planning, implementation and controls of programs designed to create, build and maintain beneficial exchange with target buyers for the purpose of achieving organizational objectives. According to Bennett (1995), The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational goals. According to handouts The American Marketing Association defines marketing as, The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational goals. Facets of Marketing: Marketing has two sides first is philosophy, an attitude, a perspective or a management orientation that stress customer satisfaction. Second marketing is a set of emotions used to implement this philosophy. This is the marketing process. In hospitality marketing, the product is the experience of the guests. This experience has both a goods component (like food) and an interactive component, which we call service. In practice, hospitality employees become part of the product (experience). Another way every employee is part of the guests experience, because the typical hospitality organisation is highly personal and interactive. APPROACHES TO MARKETING Product orientation: Product orientation means focuses on the internal capabilities of the hotel rather than on the desires and needs of the marketplace. The benefits offered by a product or service can include: Convenience and accessibility. Good after-sales technical support and advice. Comfort and ease of use. Accountability- the knowledge that if things go wrong, the manufacturer will put them right. Courtesy and helpfulness of staff. Attractive, appropriate and efficient design and packaging. Peace of mind- the knowledge that you can trust the hotel, that your needs are understood and the good or service you have purchased will not let you down. Sales orientation: A sales orientation is based on the ideas that people buy more goods and services. In marketing a product is important to establish a unique selling proposition which sets business, brand or product ahead of the competition. Creating a unique selling proposition is particularly important in providing services. Unique selling propositions are usually set out in advertising. Therefore, the focus of a sales orientation is still the product, or what an operation has to offer. Marketing orientation: Marketing is based on the ideas how the product comes out in the market. The right place is profitable for the product. It focuses on customer wants and needs and integrating all the organisations activities, including production, to satisfy these wants. Achieving long-term goals for the organisation by satisfying customer wants and needs legally and responsibly. Societal Marketing Orientation: The Societal Marketing Orientation is the newest marketing concept. This concept holds that the organisation should determine the needs, wants and interests of target markets and deliver the desired satisfaction more effectively and efficiently that competitors in a way that maintains or improves the consumers and societys well being, whether the marketing concept is adequate in the age of environmental problems, resources shortage, rapid population growth, worldwide inflation and neglected social services. The pure marketing concept ignores possible conflicts between short run consumer wants and long run societal needs. Like a Hotel, Hotel chains have established no-smoking floors and no smoking sections in their restaurants. Fast-food restaurants that practice the societal marketing concept pursues more environmentally sound packaging and produce foods with more nutritional value. Resort developers must consider the impact on the environment not only of their initial construction but also of the disposal of waste products and their use of water. MARKETING PLAN Marketing plan is designed to implement the strategies chosen at the corporate and strategic business unit levels. Writing a marketing plan of the hotel allows you to examine the hotel environment in conjunction with the inner working of the business. The marketing plan allows the marketing manager to enter the market place with an awareness of possibilities and problems. The development of a marketing plan every year is also important because good strategies are equal to success. It is noted that the long term effect of a marketing plan is hard to measure with precision. Ronald McDonald and Santa Claus have such things as long term effects. Elements of Marketing Plan Current Situation: Its important to assess market trends and the competition. These days, most forward thinking marketing people also involve salespeople to help their understanding. This is because sales people have an intimate knowledge of individual customers and competitors. Marketing Objectives: This is to help potential customers understand what your business does. It includes brochures, presentations and website. Salespeople should use these to describe the business and explain the benefits of your products to individual customers. There are all important goals to determine which ones you want to achieve first, second and so on and which are most easily and effectively executed. Swot Analysis: The total evaluation of a hotels strengths, weakness, opportunities and threats is called SWOT analysis. The best marketing people know exactly what they are good at, and what they are not so good at their strengths and weaknesses, it comes in internal analysis of hotel. In strategic planning opportunities and threats come in external analysis of the hotel. Competitor Analysis: Every business has competitors and its good for combined spend on promotion and advertising increases the size and growth of the market. It must understand that who is competitors, things like location, business size, website, product information and their target customer groups. Must spend time working out their strengths and weaknesses. Monitor their website every month and keep an eye open for them in a press. Try and work out what they are trying to achieve and where they are going. Try and guess how much they depend on a particular product or market. Market Research: Marketing people have come to rely too much on research, and they use it as a drunkard uses a lamppost for support, rather than for illumination. David Ogilvy Its important to know about existing and potential customers and need to establish basic information about them. Advertising and promotions assessment Market tracking Customer satisfaction Market segmentation Target Markets: It depicts which markets are most worthwhile and important for organisation. Marketing Tools: Its important to develop a sort of shopping list of the promotional tools organisation use and what budget organisation will devote to customers. Monitoring: Organisation will need to decide how it is going to monitor its performance. Monitoring is an important phase of the marketing process. SWOT Analysis HHC, like all major hotel corporations, is continuing to recover from the events of Sep.11th. This tragic human event also delivered a financially devastating blow to the travel industry as a whole and to the hotel industry in particular. In order to fully recover and thrive in the coming years, HHC must assess its overall all strengths and weaknesses as it moves forward through the new millennium. The following SWOT Analysis sheds some light on some of the pitfalls and opportunities that await the Hilton Hotels Corporation. Strengths Strengths are the positive aspects and distinctive attributes; It provides a significant market advantage. Strength is essential part and power of the hotel. Brand Recognition: Hilton has a good reputation and their name is well known. Hilton is a leader in the hotel industry. Its good to make their product, their packaging and their tangibles look different to those of their competitors, it is essential to make them support their brand values. Demand-Supply gap: Hotel remains proper gap in demand and supply products. It gives good results to the hotel and get promotion. Diversification of products: Hilton is more than hotels. They also generate revenue from gaming and entertainment. By being involved more than one industry. Hilton has a benefit of drawing from one part of its business if another part becomes less lucrative. Gaming and entertainment (as well as hotels) serve different customers needs. While this diversity does not automatically insure success, it does help the company to balance out its profits across three areas of the business. Hilton Hotel Corporation (HHC) is a well established organization and industry leader in the hotel, hospitality and gaming industry HHC is well diversified across the industry with hotels in the high end, business and mid-priced classes in their product mix Brand recognition HHC also possesses solid integration features such as owning the companies that manufacture its furniture and has invested in online reservation travel enterprises Hotel facilities: Hilton Hotel has a full service spa, a health club, an outdoor-pool, a steam room, a sauna, wireless and wired high speed internet access is available in public areas. The luxury properly features two restaurants for surcharge, guest receive, transportation including an airport shuttle and an area shuttle. Guest parking is complimentary. Event facilities consist of a ball room and conference/meeting rooms. The staff can arrange concierge services, wedding services, event catering. Guest Rooms features coffee/ tea makers and complimentary bottle water. Bathroom offers separate bathtubs and showers with handheld showerheads, phones, scales. All guest rooms are non-smoking. There are no room charges for children 12 years old and younger who occupy the same room as their parents or guardians, using existing bedding. The following fees and deposits are charge by property at time service, check -in check-out. In last, laundry facility, massage-spa treatment room and wheel chair are also available. Hilton Hotels are known for a high level of comfort and prestige. The Port of San Diego and Hilton are planning to develop a 1200-room hotel on the waterfront adjacent to the San Diego Convention Canter. The prestigious Hilton Malta promises the best in accommodation and a high standard of service for which Hilton hotels are renowned. For business or pleasure the Homewood suites by Hilton hotels are designed with all the comforts of home in mind. The Hotels are the Official Hotel Group of UK Athletics and the Great Britain and Northern Ireland Athletics Team. Hilton Hotels are now building computer files on customer preferences using a system called On Q, pronounced on cue. The Hotels are known across the globe and offer a choice of 2700 quality hotels in the UK, Europe, Asia, America, Africa and Australia. Hotel chain: Hilton Hotel develops many countries. This is the deluxe hotel in the Newyork city. Hotel chain is vital part of the strengths of the hotel. Hilton hotel is worldwide. Customer Satisfaction: Customer satisfaction with a purchase depends upon the products performance relative to a buyers expectations. A customer might experience various degrees of satisfaction. If the products performance falls short of expectations, the customer is dissatisfied. If performance matches expectations, the customer is satisfied. If performance exceeds expectations, the customer is highly satisfied or delighted. Expectations are based on customers past buying experiences. Hotel strengths with customer satisfaction as table setting, better offers, easy switch suppliers, location and good management team etc. Weaknesses HHC 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 such as the bird-flu and a significant terrorist strike HHC may be vulnerable to workers strikes and crack down on undocumented workers in the U.S. Most of its holdings are in the U.S. Opportunities HHC should offer an array of distinctive and specialized services to the high end guests and high rollers such as Wedding planning hosting Spas that specialize in personal services Personal trainers HHC should look to expand into or acquire a cruise line A cruise ship is little more than a hotel that floats this would essentially match what it currently does with its leased properties Gaming activities would escape regulation, etc. Take advantage of emerging markets, especially with business class and mid-priced markets Threats HHC must be careful not overextend its efforts to mix entertainment and gaming Also the extension of credit and other side effects of gaming can slowly but surely nibble away profits September 11th was a major blow to the hotel industry. A similar event could result in another down turn. The hotel has many competitors like the Oberai Towers, the Marine Plaza, The Orchid, Le Meridian etc. Relationship Marketing: Relationship Marketing involves using methods and tactics to develop long term relationship with customers in order to retain them. An organisation must exceed customer satisfaction to develop a healthy relationship with customers. Traditional transactional marketing involved the organisation focusing all of its marketing efforts on attracting the customer for one off sales. Company must put into place tactics to attract customers. To attract customers promoting the product and brand, offering good quality products, services and competitive prices. Attracted customers to be retained with organisation. Methods used to retain customers include Loyalty cards, a good customer service, product variety and quality. (Handout) Marketing Strategies Marketing strategies are the means by which marketing objectives will be achieved and are generally concerned with the seven elements of the marketing mix. It deals with pricing, selling, and distributing a product .Using a market development strategy, a company or business unit can capture a larger share of an existing market for current products through market saturation and market penetration or develop new markets for current products. What a company wants to accomplish, in terms of such things as market share and volume, is a marketing objective. How the company intends to go about achieving its objectives is strategy. Strategy is the overall route to the achievement of specific objectives and should describe the means by which objectives are to be reached, the time programme and the allocation of resources. There is clear distinction between strategy, and detailed implementation, or tactics. The following headlines indicate the general content of strategy statements in the area of marketing which emerge from marketing literature:- Policies and procedures relating to the products to be offered, such as number, quality, design, branding, packaging, positioning and labelling, etc. Pricing levels to be adopted, margins and discount policies Advertising, sales promotion, direct mail, call centres and the internet, along with The mix of these, the creative approach, the type of media, type of displays, the amount to spend, etc. What emphasis is to be placed on personal selling, the sales approach. Sales training, etc. The distributive channels to be used and the relative importance of each Service levels, etc., in relation to different segments. Marketing Mix In marketing, one such conceptual framework that is particularly useful in helping practitioners structure their thinking about marketing problems is called marketing mix. To devise a product or service which will be seen as different in the eyes of prospective customers, to the point where they will prefer it to all competing substitutes, is obviously the ultimate objective of the marketer. Marketing professionals and specialist use many tactics to attract and retain their customers. These activities comprise of different concepts, the most important one being the marketing mix. There are two concepts for marketing mix: 4P and 7P. It is essential to balance the 4Ps or the 7Ps of the marketing mix. The concept of 4Ps has been long used for the product industry while the latter has emerged as a successful proposition for the services industry. According to John O Shaughnessey (1984), Product, price, promotion and distribution are factors that, within limits, are capable of being influenced or controlled. Marketing strategy can be viewed as reflecting a marketing mix of these four elements .The marketing mix is at the core of marketing. The marketing mix consists of the key decisions where marketing managers should exhibit their greatest expertise and professionalism. It has become common to summarize the elements of the marketing mix in the 4Ps- product, price, promotion and place. The seven Ps of marketing mix can be discussed as: Product Expand the line Change performance, quality or features Consolidate the line Standardize design Positioning Change the mix Branding. Price Change price, terms or conditions Skimming policies Penetration policies Promotion Change advertising or promotion Change the mix between direct mail, call centres, the internet Change selling. Place Change delivery or distribution Change service Change channels Change the degree of forward or backward integration. People People refer to the customers, employees, management and everybody else involve in it. Realize reputation of the brand Process Methods and process of providing a service Must be helpful to customers Physical (Evidence) Experience of using a product or service Brochures, Pamphlets PUBLIC RELATIONS Public relations (PR) is an important marketing tool that until recently was treated as a marketing stepchild. PR is moving into an explosive growth stage. Advertising costs continue to rise, while audience reach continues to decline. Advertising clutter reduces the impact of each ad. Sales promotion costs have also increased as channels intermediaries demand lower prices, better commissions and deals. The creative use of new events, publications, social events, community relations and other PR techniques offers companies a way to distinguish themselves and their products from their competitors. A simple definition of public relations is the development of and maintenance of good relationships with different publics. The publics are the range of different groups on which an organization is dependent. These include employees, investors, suppliers, customers, distributors, legislators/regulations/governments, pressure groups, the community, the media and even competition. Most of these groups have different interests in any particular organization. Public relations integrate with most aspects of an organizations activities. Public relations communication tools News Generation One of the most widely used is the generation of news. News is best structured around a story which can incorporate information about an organization or its products. Events Organizations can also gain peoples attention through staging or sponsoring Events. These can range from simple news conferences and seminars to exhibitions, competitive activities, anniversary dinners and stunts. All are likely to gain media coverage and draw attention to the sponsoring organizations name. They can also aid the achievement of credibility or establish images with which an organization would like to be associated. Events are also good opportunities to develop relationship with suppliers, opinion leaders and associates, as well as customers. Publications An organizations publications are another method of communication in which public relations will have an active interest. Sales support material is an obvious example, which can include brochures, manuals and presentations, usable by all personnel who have contact with the outside world. Annual reports, other public interest communiquà ©s, and special publications such as cookery books and childrens stories also provide vehicles for influencing both customers and those who can affect customers perceptions. Internal audiences and significant stakeholders are often addressed by organizational newsletters and magazines. Support for good causes Organizational support for good causes is another means of promoting an image and associating an organization with a certain set of values. This can include charity donations in return for product coupons, the sponsorship of public service activities such as festivals, and individual executives support for local community interests such as educational establishments, hospitals or crime prevention. All these provide many opportunities for publicity elsewhere. Expert opinion Individuals within an organization can also act as sources of expert opinion for journalists, public enquiries or other forms of research and investigation. Public relations managers may seek to promote the expertise in their organization through the dissemination of contact lists, and by grooming individuals interviewing and presentational skills. Visual identity Organizations also often seek to establish a visual identity through conformity of design or logos. While design can make it easier for customers to recognize an organizations products when they come across one, logos and other identification marks can be more important for internal markets as a means of signifying change or commonalty of purpose. Market Position and Services Hilton Hotels is one of the market leaders in the hotel and gaming industry in the United States. Hilton is a well-known and distinguished name in fine hotels across the United States and worldwide. In 1999, Hilton expanded aggressively by acquiring the Promus Hotel Corporation, Hampton Inn and Suites, Doubletree Hotels, Embassy Suites Hotels, and Homewood Suites. Hilton Hotels Corporation has grown to become the worlds most recognized and most successful hotel company (Hilton Innovation, 2007). With the 2006 acquisition of Hilton International, Hilton Hotels Corporation became a global force with more than 2,800 hotels in more than 80 countries throughout the world (2007). Marketing Mix theory on Hilton Hotel The marketing mix is essentially a conceptual framework that is particularly useful in helping practitioners structure their thinking about marketing problems is called marketing mix. To devise a product or service this will be seen as different in the eyes of customers. There are many different approaches to the marketing mix like 7ps. Product: There is no point in developing a product or service that no one wants to buy; it becomes first what to offer first. Hilton hotel find out what customers need or want and then develop the right product-with the right level of quality to meet those needs now and in the future. Their product is not tangible. Their perfect product must provide value for the customer. They regularly check customers satisfaction about product and their services. They also provide product of best quality to their customer. Price: Hotels price is competitive but not cheapest This business is able to compete with other larger rivals by adding extra services or details that is offer customers better value for money. . Their pricing must also provide a profit. It is the only element of the marketing mix that generates revenue everything else represents a cost. The price is used by many buyers as an indicator of quality. Promotion: It does not mean communicating just their customers. They ensure their internal stakeholders are aware of the value and attributes of their products. Hotel communicating effectively to his staff/ fellow employees so that they can be knowledgeable and share expertise with their customers. The employees look regularly at the products that account for the highest percentage of their sales. Process: Hotels process is good because customer does not see how their business runs, customers will see the work. The process of giving a service and the behavior of those who deliver are crucial to customer satisfaction. Its process is best. Never customer waited for their products, they never waste their time. They provide right information of the product to customers and the staff is helpful to them at every time. Customers keep happy by staff. There is no value in making the rest of the company run perfectly if this part is faulty. This P could be great source of competitive advantage if used wisely. Physical Evidence: Hotel provides facilities such as clean, tidy and well-decorated reception area to reassure. They also delivered financial services product in a formal setting, while a childrens birthday entertainment company adopt a relaxed approach. Although customer cannot experience the service before purchase but they talk to other people with experiences of the service. Their views do not come from the company. This Hotel engages these customers and asks for their feedback, so that they can develop reference materials. New customers can then see testimonials and are more likely to purchase with confidence. Physical presence, style, location and decoration of the hotel grabs attention, interest and, to some, creates the desire to enter and explore. People: Anyone who comes into contact with hotels customers will make an impression and that can have a profound effect-positive or negative-on customer satisfaction. The reputation of hotels brand rests in their peoples hands. So they are appropriately trained, well motivated and have the right attitude. Hotels all employees who have contact with their customers are not only properly trained, but also the right kind of peop