MM Group Assignment 2
MM Group Assignment 2
Term– IV
Marketing Management 2
Group Assignment
On
(11/08/2022)
Submitted by -
Hilton Hotels & Resorts is a global brand of full-service hotels and resorts and the flagship
brand of American multinational hospitality company Hilton.
Through its hotel franchises, the Hilton Group offers a wide range of hospitality services
globally.
In 117 nations and territories, Hilton provides lodging services has 18 brands in its portfolio,
including upscale, luxury, and midscale hotels (2019). Properties include those that are
owned, controlled, joint ventures, and leased.
As of December 2018, the Hilton Hotels and Resorts flagship brand had 586 properties.
present in 94 different nations. Hilton's luxury hotel brand, Waldorf Astoria Hotels &
Resorts, operates 31 locations in 14 different countries. LXR Hotels & Resorts: Dubai saw
the opening of the first LXR Hotel & Resort. Hilton's luxury hotel brand Conrad Hotels &
Resorts has 33 establishments spread across over 22 different countries. Canopy Hotels:
Eight properties spread across four countries, offering an upper luxury lifestyle. Hilton
founded the upper-upscale Curio Collection hotel brand, which has 68 locations spread across
28 countries and caters to tourists interested in experiencing the local culture. Luxury hotel
chain DoubleTree has 559 locations throughout 45 countries. Hilton introduced their
"Tapestry Collection" in the US in 2017. As of December 2018, this brand had 18 properties.
Embassy Suites: Upper Upscale lodging with 253 locations throughout 6 nations. Motto:
Milton's upper-midscale hotels. Luxury hotel chain Hilton Garden Inn has 815 locations
throughout 40 countries. 2,433 upper midscale hotels in 25 countries under the Hampton
brand. True: There are 53 midscale hotels in the United States. Hilton's upscale Homewood
Suites brand has 482 locations in three nations. Hilton's upper midscale Home2 Suites hotel
brand has 290 establishments in two nations.
Target markets include the corporate, convention, and leisure sectors. Hilton has worked
with airlines, car rental companies, internet retailers, cruise lines, dining establishments, rail
transportation, and financial organisations like American Express to increase their company.
Members of the Blue, Silver, Gold, and Diamond tiers can utilise Hilton's services for
discounted rates. The "Diamond Membership" is the only one available among these.
The distribution strategy of Hilton Hotels & Resorts significantly utilises information
technology and the internet in a variety of ways. The company's official website, which is
equipped with a variety of features and capabilities that offer customers practical
assistance like booking a room, planning events and weddings, scheduling meetings, and
booking airport pick-ups, first and foremost, serves as an effective platform for service
distribution.
Additionally, mobile useful applications made accessible for the iPhone and Android
platforms assist the distribution of Hilton Hotels & Resorts goods and services. Hilton Hotels
& Resorts has used social media as an additional useful tool for marketing its goods and
services. The primary justification for using the internet as the foundation of Hilton Hotels &
Resorts' distribution strategy is related to the numerous benefits connected with the internet.
Customers of Hilton Hotels & Resorts have the ability to make advance purchases of goods
and services while on the go and in a matter of seconds thanks to the internet.
3. Price element of Hilton
Within the context of the pricing strategy matrix, pricing strategies can be categorised
into the following four major groups: economy, penetration, skimming, and premium.
Using a premium pricing, businesses set high prices for goods and services that are
thought to be of great quality and also have extra qualities and features. The bulk of
Hilton Worldwide's rooms fall into the upper upscale and upscale price ranges. As a
result, the type of pricing strategy used by Hilton Hotels & Resorts can be categorised as
luxury based on the description above. Hilton primarily provides five- and four-star
accommodations, but it can charge higher prices because it also "sells" a number of
ancillary perks, including a sense of accomplishment, social prestige, and luxury.
4. Promotion of Hilton
For a long time, the Hilton group has been a well-known name in the hospitality sector. The
specialised services and client satisfaction have received a lot of attention from the group.
Global corporate customers make up the target market. The group has worked with numerous
commercial organisations, multinational corporations, institutions, and other groups of their
priority booking. The Hilton group has also partnered with payment banks, various
restaurants for the range of food providers, and many other organisations to increase reach to
the Hilton hotels as part of the group's promotional strategies. The material of upscale
publications is used for additional promotion on various consumer review websites.
The global brand recognition is strong. Company prioritizes on the guest experience, which
promotes word-of-mouth and publicity. They use social media as well as other digital
marketing and advertising tools. Hilton Honors guest reward programme to connect and draw
clients the main source of guest loyalty for the Hilton hotels and resorts. Company invests in
CSR and sustainability in order to keep up a positive social reputation.
5. Physical evidence of Hilton:
Except for the concrete components like the things customers utilise while there, hotel
services are primarily intangible. Bills are among the other tangible evidence types. Paper
bills have been supplanted by digital services. Paperless check-in and check-out are available
via the Hilton app. Furniture and amenities in the room are also considered physical evidence.
The hotels and resorts of the Hilton group have a significant global presence and reach. To
broaden its reach and establish itself in the industry, the group has partnered with other hotel
reservation chains and websites. Customer demand is being manipulated by turning it into
hospitality services. There is fierce competition in the hospitality industry, even if the
business is one of the market leaders. The Hilton company has a significant market presence
because to its wide range of sites and services.
6. People of Hilton:
People who are directly tied to this firm and the target market. Only devoted clients and new
market customers can sustain the global hotel industry. Therefore, the hotels must maintain
their services, qualified employees, and market reputation in order to keep this loyalty. Since
business executives are the primary target market, it's crucial to offer hospitality services—
which The Hilton group has done successfully—in order to keep the clientele base. Managing
the help desk, providing customer care, and planning various customer entertainment events
are some of the solid foundations for Hilton's success.
169K people were employed as of December 2018 and keeps up a great workplace
atmosphere. Company has received many accolades and prizes for placing a strong emphasis
on personnel management, offers its employees rewards and benefits that are among the best
in the industry.
7. Process of Hilton
One of the greatest managed hotel chains in the world, the Hilton companies are renowned
for their systems and procedures. The Hilton group's processes and client services operate
consistently. The group's supply chain management has been managed with solid methods,
which has reduced operational costs. The Hilton Group is able to maximise the profits from
retaining its market-leading position by using a distribution system, service flows, and
booking through several web portals. Thus, this completes Hilton's marketing strategy.
Hilton visitors can book hotels and manage their stay via the Hilton website or app. The
added client convenience is the main priority. Making reservations, choosing rooms, and
using a mobile device as the room key are all possible with the Hilton App. It makes the front
desk unnecessary.
Introduction of 2nd company:
With more than 7,200 hotels spread across 134 countries and a brand portfolio of 30 brands,
Marriott is one of the biggest hotel companies in the world (As of Jan 2020). J. Willard and
Alice Marriott established Marriott International in 1927, and the business went public in
1998. In 1998, it was separated from the business formerly known as Marriott International
Inc. Among all the top hotel firms, its broad portfolio of brands offers one of the most
enticing selections of brands and locations. Marriott International has 6,906 properties in total
as of the end of 2018, and that figure has since surpassed 7,200. Worldwide, Marriott
manages, franchises, and grants licences for hotel, residential, and timeshare properties.
The business of the corporation is separated into three primary operational segments: Asia Pacific,
North American full service, and North American limited service. The largest market for Marriott
International, and particularly the United States, is where the majority of Marriott properties are
found. Marriott International is a well-known name in the hotel industry and has won numerous
accolades for its outstanding culture and customer-centric approach.
1. Product:
One of the top brands in the hotel business, Marriott International offers several types of
housing services on a global scale. Marriott offers lodging services in the premium, select,
and timeshare categories in addition to the many hotels that provide luxury accommodation
services. Seven of the thirty brands in its portfolio provide services for luxury hotels. Its ten
premium brands and eleven select brands both provide accommodation services. In addition,
Marriott provides condos and timeshare units.
Marriott International Inc.'s portfolio of premium brands consists of J.W. Marriott, The Ritz
Carlton, W Hotels, The Luxury Collection, St. Regis, EDITION, and Bulgari. Marriott
Hotels, Sheraton, Westin, Renaissance Hotels, Le Meridien, Autograph Collection Hotels,
Delta Hotels, Gaylord Hotels, Marriott Executive Apartments, and Tribute Portfolio are some
of Marriott International's premium brands. Select range brands provide convenient and
modern amenities and services.
The Select range's longer-stay brands provide facilities that mimic a homelike experience.
There are classic Select brands and innovative Select hotel brands under Marriott's Select
product line. Courtyard, Residence Inn, Fairfield by Marriott, SpringHill Suites, Four Points,
TownePlace Suites, and Protea Hotels are some of Marriott's traditional Select Hotel brands.
Aloft, AC Hotels by Marriott, Elements, and Moxy are among Marriott's Distinctive Select
Hotel brands. Additionally, the business purchased Starwood Hotels and Resorts in 2016.
2. Place:
Marriott is an international hotel chain with operations in 134 nations. The company's
portfolio includes 30 different brands, and it has divided its business into three distinct
reportable segments: full service in North America, limited service in North America, and
Asia Pacific. Additionally, the corporation operates hotels across Europe and the Middle
East, but these don't count as reportable segments. Hotels that are owned, leased, or
franchised by Marriott can also be found in its unconsolidated joint venture portfolio.
With 5,106 properties as of December 2018, Marriott Hotels has its largest market in North
America (mostly the US), followed by 717 hotels in Asia Pacific. There were 5,322
properties in the US alone as of January 2020. Texas and California both have 510 Marriott
properties each, with Texas having the most of these with 545. At the end of 2018, Marriott
ran 22 hotel reservation centres, including 14 in various countries and territories and 8 in the
United States.
3. Price:
Marriott has kept up its reputation as a top-tier hotel brand. The company has adopted a
premium pricing approach in terms of pricing as well, which is reflected in its brand
portfolio, which consists of 21 luxury and premium brands out of 30. But in order to draw
and keep clients, the hotel sector has also implemented a number of rewards schemes due to
increased competition.
The organisation also frequently offers a number of bargains and discounts that enable its
visitors to make significant savings on their stay in one of the best hotels across the world.
However, a number of other criteria, such as location, level of competition, and demand, can
have an impact on hotel rates. To combat this pressure from the market while also
maintaining its reputation as a luxury brand, the company offers alluring discounts and
specials.
4. Promotion:
Marriott is a reputable premium hotel brand that enjoys widespread brand recognition. In
addition to holding a significant market share in the US and ranking among the top
hospitality brands, it has also maintained a strong presence in other important cities around
Europe, the Middle East, and Asia-Pacific. Its emphasis on customer satisfaction and service
quality has generated more exposure and given it a significant competitive advantage.
Marriott, however, primarily uses digital channels for promotions, including its website, app,
and social media. In addition, the business has implemented a number of rewards schemes to
keep customers loyal. Visitors can book accommodations and find out about the newest
specials from the website and mobile app, which serve as its primary promotional platforms.
On Facebook, the company's Marriott Bonvoy Travel programme has almost 3.7 million fans.
It is a complimentary service provided by Marriott to improve the travel experience of its
customers. There are various tiers in this programme, including Ambassador Elite, Gold,
Platinum, Titanium, and Silver Elite. As soon as they sign up for the programme, visitors
start receiving benefits like free internet, etc. After integrating several prior reward
programmes into one, this reward programme was released in 2019.
Cobranding is also used by Marriott for marketing. For its US-issued cobrand credit cards
associated to its reward programme Marriott Bonvoy, the corporation has multiyear partnerships
with JP Morgan Chase and American Express. Marriott's loyalty programme has been effective in
helping the hospitality company generate repeat business. In addition to these initiatives, the business
emphasises CSR and sustainability to uphold a positive societal reputation. Additionally, it uses its
social media platforms to respond to customer complaints received fom all around the world. The
business has also received a number of accolades and awards for its excellent hiring processes and
general efforts to uphold a positive reputation. It is listed on Forbes' list of the Best Employers of
America for Diversity and Fortune's list of the World's Most Admired Companies for 2020. In
addition, Newsweek named the company as one of the nation's most ethical corporations.
5. Process:
Throughout its history, Marriott has been committed to raising the standard of convenience
and service provided to guests. In order to provide its clients with more convenience during
check-in, stay, and check-out, the corporation has increased its investment in digital
technology in recent years. The software makes it easier for guests to efficiently manage their
stay. Eight of Marriott's 22 reservation centres are located in the US. Users of the Marriott
Bonvoy app have exceptional control and ease, allowing them to request amenities and
manage their stay without any hassle. To keep its competitive edge in the hospitality sector,
the company continues to maximise its investments in people, systems, and procedures.
6. People:
Around 176,000 employees were working at Marriott as of 2018. The business has gained
widespread acclaim as one of the finest employers in the US during the past few years. The
business appeared on a number of Forbes' Best American Employers lists in 2019, including
those for diversity and recent grads. Additionally, Marriott was named one of Fortune's Most
Admired Companies in the World and one of Forbes' Best Corporate Citizens of America.
Marriott was named one of the top workplaces for women and diversity by Great Place to
Work. The outstanding workplace culture at Marriott and its emphasis on human resource
management are the cause of these honours and recognitions.
7. Physical Evidence:
The tangible elements of the experience, which mostly consist of the buildings and amenities,
are included in the physical evidence component of the marketing mix for hospitality
services. There isn't much that counts as physical proof in the hospitality industry aside from
the amenities that guests order and the room amenities, including furniture. Check-in apps
have reduced the necessity for paper invoices as the use of websites and apps has increased.
However, businesses like Marriott use branded amenities for both branding and to make
tourists' stays exceptional and memorable. With the Marriott Bonvoy app, guests can check in
on the go and get extras like toothpaste and combs. Visitors can also use the app to view their
folio and previous transactions.
Promotio They use social media as well as One of the positive beneficiaries of
other digital marketing and Marriot is “word of mouth” promotion.
n
advertising tools. Hilton Honours It has a very well-designed website
guest reward program to connect and It has also worked on User
draw clients the main source of guest Generated Content strategy
loyalty for the Hilton hotels and It also has a customer loyalty
resorts. The company invests in CSR program called Bonvoy
and sustainability to keep up a
positive social reputation.
Physical , hotel services are primarily There isn't much that counts as physical
intangible Paper bills have been proof in the hospitality industry. Check-in
Evidence
supplanted by digital services. apps have reduced the necessity for paper
Paperless check-in and check-out are invoices as the use of websites and apps
available via the Hilton app. Furniture has increased. However, businesses like
and amenities in the room are also Marriott use branded amenities for both
considered physical evidence. brandings and to make tourists' stay
exceptional and memorable
People The Hilton group to keep the clientele Marriott was named one of the top
base provides help desk, customer workplaces for women and diversity by
care, and plans various customer Great Place to Work. The outstanding
entertainment events Company has workplace culture at Marriott and its
received many accolades and prizes emphasis on human resource
for placing a strong emphasis on management are the cause of these
personnel management honors and recognitions.
The following benefits are provided
. The business appeared on several
to employees:
Forbes' Best American Employers lists in
- Starting competitive salaries.
2019, including those for diversity and
- Paid time off for top performers.
recent grads. Additionally, Marriott was
- Programs for Educational
named one of Fortune's Most Admired
Assistance
Companies in the World and one of
Forbes' Best Corporate Citizens of
America
Process Hilton companies are renowned for Marriott has been committed to raising
their systems and procedures. The the standard of convenience and service
Hilton group's processes and client provided to guests. To provide its clients
services operate consistently. The with more convenience during check-in,
group's supply chain management has stay, and check-out, the corporation has
been managed with solid methods, increased its investment in digital
which has reduced operational costs. technology in recent years. The software
The Hilton Group can maximise the makes it easier for guests to efficiently
profits from retaining its market- manage their stay
leading position by using a
distribution system, service flows,
and booking through several web
portals
Hilton and Marriott both offer hospitality services and own, manage and franchise full-
service hotels and resorts. They both offer lodging services- in upscale, midscale, premium
and luxury category. The target market for both is nearly the same- middle and senior aged
professionals with high level of income belonging to upper social class.
Place:
Both groups have experienced significant expansion over time. Beginning with the US, both
have concentrated on western nations as the group aims to appeal to a privileged portion of
society. The firm is gradually concentrating on new rising markets like China and India.
Luxury service providers are growing their operations here as a result of the expansion of
international trade in emerging markets.
Both rely heavily on the internet and information technology in different ways. The official
websites of the businesses function as an efficient platform for the distribution of services
since they are equipped with a variety of features and capabilities that offer clients useful
help, such as booking a room, organizing events and weddings, etc. Mobile applications that
are practical are also made available for the iPhone and Android platforms, facilitating
service.
Price:
Both provide a range of experiences that range in price from midrange to premium. They
manage their pricing strategy in a way that prevents the hotels from losing their brand
reputation while also satisfying the value and quality criteria. Both companies use the
premium pricing strategy, which is charging high rates for goods and services that are
thought to be of outstanding quality and have extra qualities and features. Because they are
"selling" a variety of intangible benefits in addition to their primary products, such as a sense
of accomplishment, high status, and luxury, businesses can charge their clients premium
prices.
Promotion:
Process:
The emphasis has remained on raising the standard of customer service and convenience
provided to visitors. In order to provide their consumers with more convenience during
check-in, stay, and check-out, businesses have increased their investments in digital
technology in recent years. The software makes it easier for guests to efficiently manage their
stay. Both businesses have established specific set processes to make sure that the core
product and the supplemental product are developed and delivered in the right way and at the
appropriate time. The housekeeping department makes sure that every amenity is available as
specified on the check list when the room is getting ready for a customer check-in. In fact, the
procedures are so precisely outlined that hotel staff is even given instructions on how to
interact with guests.
People:
Both businesses have received recognition and numerous prizes for their emphasis on
personnel management. They provide their employees with perks, a respectful work
environment, and industry-leading rewards. Additionally, there are initiatives to support
education and a yearly survey for moral and legal behavior to determine whether employees
are abiding by the company's conduct guidelines.
Physical Evidence:
Except for the tangible components like the things customers utilise while there, hotel
services are primarily intangible. Bills are among the other tangible evidence types. Paper
bills have been supplanted by digital services. Furniture and amenities in the room are also
considered physical evidence. They use branded amenities for branding as well as to make
tourists' stays exceptional and memorable.
Learnings
- Understand how the market standing and core strengths and weakenesses through the 7p
marketing mix of both the organisations.
- We were able to understand how the companies review and define key issues that affect the
marketing of its products and services.
- Understand how the 7p model works better for the service companies than the 4p model.
- Through the example of both the companies we could understand steps to take to develop
services, alter our price structure, new distribution methods, media channels for
promotion,efforts to reassure clients, such as facilities, knowledgeable personnel,excellent
website ,people and skills gaps?
- The comparison and contract of both the competitors could help draw conclusions on which
company has better strategy and decision making than the other.
Treating every guest like a VIP creates positive, memorable experiences that make them want
to return. Train your staff to act with a sense of urgency for every request. Mistakes and
mishaps are inevitable, but going above and beyond can turn a negative situation into a
positive one.
Make VIP service proactive. If you know a wedding party is coming, surprise the bride with a
room upgrade or place snacks in her room with a congratulating card. Thoughtful details can
turn a one-time guest into a patron.
Train your staff to know the best spots in your location. Guests will often ask staff for dining
recommendations and tips on things to do while they are in town. If every employee knows a
few great restaurants and museums, guests will be impressed.
Measuring customer service performance with customer service surveys is the best way to
flag areas of improvement for your hotel; it's also a great way to find out where you excel.
The majority of customers define service by how quickly and efficiently their issue was
addressed and fixed. Take your surveys seriously and include your staff in the process.
Success in the hotel industry is built by making every effort to provide exceptional service.
You can use these tips to start thinking innovatively about areas where you can improve. It
starts by setting stellar standards and is implemented when you get your entire staff on board.
3.Prioritize technology
Hotel technology updates consistently, and the goal is usually to provide faster, better service
for guests and optimize productivity for employees. An updated property management system
(PMS) is an absolute must; it facilitates communication between the front desk and
housekeeping during the check-in and check-out process, generates reports and manages the
staff.
References:
https://www.essay48.com/term-paper/13743-Hilton-Marketing-Mix
https://www.studocu.com/vn/document/dai-hoc-quoc-gia-ha-noi/principle-of-marketing/jw-
marriot-the-marketing-mix-7p/25056913
https://www.mbaskool.com/marketing-mix/services/17317-marriott.html
https://qdoc.tips/j-w-marriott-report-on-amp-7ps-in-marketing-pdf-free.html
https://www.notesmatic.com/marriott-international-marketing-mix/
https://www.notesmatic.com/hilton-hotels-and-resorts-marketing-mix/
https://www.mbaskool.com/marketing-mix/services/17406-hilton.html