Hilton Hotel Corporation: Mission, Competitors, And Target Market

Section 1: Company Mission/Vision/Values

Mission, Value

Hilton Hotel Corporation, commonly called as Hilton Worldwide, was established in 1919 with headquarter in McLean, Virginia.

Mission- “To fill the earth with the warmth and light of hospitality by providing unforgettable experiences – every hotel, every guest, every time”.

Value- Being Hospitable, having Integrity, being Leaders (both in the society and industry), Ownership (both in actions and properties), and Teamwork.

Current Marketing Situation

Internal Factors

Current Offerings – Hilton honors, Hilton Credit Card, Longest running hotel chain, and extensive employee training.

Financial Status – In 2017, Hilton Worldwide had gross revenue of 11,663 million dollars. They had 15.55% as an average growth rate of five years and one-year sales growth of 3.47%.

Core Competencies – Customer Satisfaction, Advanced IT Systems, and Service Standardization

External Factors

The marketing plan of Hilton will be affected by demographic, economic, environmental, technological, political and social-cultural external factors or trend. Consumers purchase products on the basis of a market trend. Doing developments in the product and manufacturing activities on the basis of market trend can be risky, however, it is also an essential part of becoming a leader in the industry.

SWOT Analysis

Strength – Property ownership, service customization, diversity of brands, number of properties, and Continuous growth.

Weaknesses – Narrow Company focus, organizational resources

Opportunities – Technological Integration, Emerging Markets partnerships

Threats – Technological Information Theft, the political turmoil of emerging markets, and increasing number of competitors.

 

Target Market

The Millennial segment has high buying power as compared to other segments; therefore Hilton should focus on this segment and offer its services. Moreover, Hilton must promote its services differently to Millennial in various regions.

Objectives of Strategic Marketing Plan

Increase awareness among customers of all the brands by 4% by the end of 2020

3% increase in sales for the next two years through advertisements among the middle-income Millennial aged 25-35.

Product Strategy

Millennial are spending less on physical items and more on experiences and traveling. Hilton is normally known as a luxury hotel company is planning ahead by introducing new brands to their already successful lines of hotels to accommodate this new category of travelers. One of Hilton’s newest brands is “Tru by Hilton”. The company is planning to place advanced technology in these hotels like digital wall art, mobile apps for room control.

Pricing Strategy

Hilton group offer premium pricing strategy which involves charging high-level prices for products and services that are perceived to have excellent quality and additional characteristics and features.

Section 2: Current Marketing Situation

Hilton only offers five star and four-star rooms and the company is able to charge its customers at premium levels because beyond the core product, Hilton also ‘sells’ a set of intangible benefits such as a sense of achievement, high status, and luxury.

Distribution Strategy

Company majorly rely on information technology and Internet as a distribution strategy because internet presents Hilton Hotels & Resorts customers with the possibilities of purchasing products and services in advance on the go and within a timeframe of a few seconds.

Marketing Communication Strategy

The AIDA (attention, interest, desire, and action) model should be followed by Hilton.

In the first stage Attention- At this stage, the aim will be to increase the awareness of the hotel amongst target market. 

In the second stage Interest- The aim is to increase the interest of the targeted customers with the help of hotel, videos, graphics, amenities, etc.

The third stage desire- This stage will support in making the services and products desirable.

In the fourth stage action- Hilton Hotel may increase engagement with the help of marketing channels.

Marketing program

100% Satisfaction

Mobile Customer Satisfaction Surveys

Hilton Honors

Financial Plan

With the key objective of targeting Millennial and growing brand awareness globally in the age group of 25-35, the financial backing of Hilton is consist of increasing the budget of marketing and extending ad campaigns to advertise Tru, as this is the most relevant product to this segment.

Marketing Metrics

Customer Perspective

Objectives- Meet the level of customer satisfaction, adds new loyal customers, improve customer service, and maintain hotel-booking rates.

Measurement- Number of new loyal customers registered, the number of old loyal customers retained, assess customer satisfaction through ordinal rating.

Target- Static data of new and existing customers

Initiative- Monthly monitoring of sales and service, investment in the lifestyle segment

Internal Perspective

Objectives- Retain skillful personnel and staff; improve employee incentives, faster implementation of new policies.

Measurement- Number of retained employees by re-contracts, performance appraisal and benefits because of new policies.

Target- Retaining top quality staff, increasing development graphic, reduce the difference in the number of new employees for old branches per year.

Initiative- Cross audits, weekly follow-up, defensive implementations, facility readiness, and certifications.

Learning & Growth

Objectives- increase employee customer ratio and service desks, employee retirement benefits, and employee training.

Measurement- Eligibility for certifications, license and technical standards, performance evaluation.

Target- Attain the best license in industry, all employee participation in training and development program; implement the best technology in the market to facilitate customer and employees.

Initiative- Training and skill building programs, Set-up new technology to support human capital, communication programs to better serve the customers.

References

Hilton. (2018). Our Brands. Retrieved from.

Pratap, A. (2017). Mission and Vision of Hilton Worldwide: An Analysis. Retrieved from.

Root, G, N. (2018). Uncontrollable External Factors of Marketing. Retrieved from.

Statista. (2018). Revenue of Hilton Worldwide from 2009 to 2017 (in billion U.S. dollars). Retrieved from.