Marketing Sample Research Paper on Hilton hotel in London

Introduction

The history of the London Hilton hotel dates back to the year 1927 when the first Hilton hotel was opened in Texas, United States. London Hilton Hotel is one of the most recognized institutions in the hospitality industry, the organization is widely known for its provision of authentic services to consumers in the city of London (Hilton Worldwide, 2015). As a luxurious brand, London Hilton has continued to be a creative leader among many luxurious hotels in the hospitality industry. Hilton hotel London was opened in 1963, and it is located on Park lane; next to many London attractions; there are theaters and famous landmarks surrounding the hotel. In regards to its vision and mission statement, the hotel states, “The vision of the Hilton hotel is to fill the world with light and warmth of hospitality “and “The mission of this organization is to become a pre-eminent global hospitality company, the first choice of guests, team members and owners alike” (Hilton Worldwide, 2015).

 

An effective distribution channel is very important, as it helps an organization to manage its prices and maximize its revenue (Hilton Worldwide, 2015). In the hospitality industry, there are many approaches that can be used to manage distribution tasks. In most cases, this is a risky affair because hoteliers are not able to adequately understand the distribution platforms that are available. In the past, the distribution channels were simplistic and they were inclusive of brochures, adverts, guidebooks, call centers and travel agencies (Hilton Worldwide, 2015). All these channels, despite being simple are expensive and have a limited range, they are not able to effectively delivery in regards to the mission and vision, for this reason hotels like Hilton have come up with effective distribution channels to reach their customers. It has been significant for Hilton hotel London to run its distribution network in an efficient way for the customers to find the hotel easily (Hilton Worldwide, 2015).

Apart from the reservations that the customers can make by phone, the Hilton hotel London has a booking engine on their website; this makes it easy for consumers all over the world to find and book (Hilton Worldwide, 2015). Hilton is also part of the global distribution system, for this reason, it is possible to book the hotel through travel agents. Hilton also uses third party merchant models; for example, using Expedia and travel web, through the third party websites, customers can search and book for the hotel. Hilton also uses links that are located on their social media websites like Facebook (Hilton Worldwide, 2015).

 

Direct

  1. Hotel website

Indirect

  1. Online travel agency (OTA)
  2. Global distribution systems (GDS)
  3. Social media

Portfolio analysis

Portfolio analysis is a very significant concept as it can help Hilton hotel London to bridge the gap between strategy formulation and implementation; portfolio analysis involves a thorough analysis of the services and products that make up an association business portfolio (Frolick & Ariyachandra, 2006). In the case of Hilton hotel London, portfolio analysis can also encourage the management to evaluate businesses within the organization, set objectives and allocate resources to each business.

1. Core products

 

Core products can be explained in terms of products that are offered by the organization (Griffin, Shea & Weaver, 1997). The core products are significant since they help to attract customers to the Hilton Hotel. The main product is the provision of accommodation in terms of hotel rooms, where customers stay for some specific period of time. All the rooms in the hotel are designed to provide immense comfort plus convenience to every customer who visits Hilton (Hilton Worldwide, 2015). The hotel is divided into 453 guest rooms that are inclusive of 56 suites. The spacious rooms at London hotel are beautifully styled; they are located on the fifth and the eight floors of the hotel, giving a rich view of London.

All the rooms offer a nice view to the city of London or the Hyde Park (Hilton Worldwide, 2015). All the guest rooms feature air conditioning, they have well lit desks and a TV that has on demand movies and sports, elegant bathrooms that have exclusive bath products and a trouser press. The suites also offer a rich view to Hyde Park and the city of London. In addition, they offer unique areas like window seats, walk in wardrobes and whirlpool tubs. The executive rooms provide a wide range of exclusive advantages that includes access to executive lounges. Distribution strategy for core products involves using the organization website. The London Hilton hotel is able to market its main product by using its own website. Some of the common features that are on the website include the price and condition of the room. By using third party sites, London Hilton is able to sell its luxurious rooms to potential customers.

Matrix for core products

 

Type of experience Purpose of experience Audience
Hotel Room -Provision of accommodation

 

-Business people

-Families

-Wealthy individuals

Facilitating services

 

The facilitating services at the Hilton hotel are inclusive of the services that help the customers consume the core products easily. The London Hilton hotel provides its customers with various facilitating products, which include customer services, bars and restaurants and the online reservation facilities. The facilitating services are advertised through the hotel’s own websites and brochures provided to the customers when they arrive at the hotel. By using online reservation facilities, customers can make reservations for different service

Matrix for facilitating products

 

Type of experience Purpose of experience Audience
-Bars and restaurants

-Online reservation facilities -Customer services

-Provide consumers with dining and relaxing areas

-Makes it possible for customers to make reservations online

-Assist customers by performing various significant services like cleaning rooms

-Families

-Business people

-Wealthy individuals

Supporting products

 

The main reason for offering the supporting products is to enable the organization to have a competitive advantage for the business; this is done by significantly increasing the value of the core products plus the services (Siguaw, Simpson & Kasikci, 2006). The Hilton hotel offers a wide range of supporting products; they include room services, free newspaper and magazines for the business travelers.

Matrix of supporting products

 

Type of experience Purpose of experience Audience
Room service

Free newspapers

Magazines for business travelers

Entertain the customers

Inform the service

Increase the products value

Business men

Wealthy individuals

Organizational Competitiveness

The current context of the hospitality industry is marked by the increasing recognition of interrelations imposed by the new rules of conduct (Bayere & Schreiber, 2011). The competiveness issues are a topical subject for all the actors in the organization.

a. Relation competitiveness

The London Hilton hotel is aware that the key to attract and make the clients loyal is offering them an unforgettable experience and not just in the accommodation department. London Hilton hotel has innovated to create a unique environment to its customers, from the hotel rooms, the lobbies and the restaurant (Barney, 2009). The key to the competitiveness of the London Hilton Hotel is based on the fact that the Hotel has many pieces of work that work well together. This makes it possible for the hotel to leverage its strength consistently in the entire system.

In consideration of the brand programs, Hilton hotel recognizes the need to avoid complacency in its operations, and one of the major initiatives that the organization has undertaken is to ensure that its brands do not fall behind in the eyes of the customers (Hilton Worldwide, 2015). London Hilton Hotel has worked to personalize the guest experiences; the organization has also rolled out a strong integrated customer relationship management efforts that are integrated with its frequent guest programs (Brucken, 1996). The London Hilton has a rich and diversified relationship with customers, employees and stakeholders. The organization communicates to its customers through various means, for example, by issuing online and offline press release in a regular manner. London Hilton Hotel also communicates through newsletters with the organizational stakeholders (Hilton Worldwide, 2015).

b. Promotion

London Hilton Hotel has been able to employ promotion strategies that utilize various components in the promotion mix; this includes advertising, public relations and the promotion of sales. The advertising strategy that is used by the London Hilton Hotel helps the organization to communicate its marketing message to the potential consumers (Frolick & Ariyachandra, 2006). The marketing message is communicated by using specific elements, for example, advertising in the local dailies and popular magazines like Forbes. Broadcast advertising has also become a significant component of passing the marketing message (Bayere & Schreiber, 2011). Selected broadcast avenues like TVs, are used by the London Hilton hotel in its marketing campaigns.

c. Sales promotion

By using sales promotion, London Hilton hotel is able to persuade the potential customers to purchase products and services through some specific incentives (Griffin, Shea & Weaver, 1997). The hotel engages in sales promotion by using the HHonors points; this are point based rewards programs and discount vouchers that are available on the website of the hotel. London Hilton offers a wide variety of deals to its customers with the aim of increasing its revenues (Henry, 2008). The hotel is able to gain advantages from using sales promotion in terms of revenues and maximum utilization of their products.

d. Technology

The organization distribution strategy is dependent on the information technology and internet in many formats. The website of the company is a significant platform that can be used for service distribution. This is because it has many features and capabilities that provide practical assistance to many customers, for example, booking a room and event planning. Mobile convenient applications are available for the iPhone and Android platforms (Hilton Worldwide, 2015). Social media has become an important aspect of distributing products and services since potential customers are able to view the type of products and services offered by the organization, and customers could also be able to book in advance (Hilton Worldwide, 2015).

e. Process

London Hilton Hotel has been able to maintain the process of providing high quality services to its customers at premium levels, and it operates 24/7 (Hyun & Kang, 2014). Accommodation services are significant and need to be within reach at all times, for businesses to have a competitive advantage. The creation of awareness and stimulation of demand among different consumers is significant in helping the company to have a competitive advantage.

Market Segmentation Analysis

The process of market segmentation involves the division of the market into different parts commonly known as the segments. This is driven by different characteristics that are found in the target market (Hyun & Kang, 2014). Hilton hotel always ensures that it attracts the most suitable segment based on the services and products that it is able to target effectively and efficiently. The London Hilton hotel market can basically be divided into four groups, this includes; geographic, demographic, psychographic and the benefit oriented (Kim, Lee, & Yoo, 2006).

a.Geographic segmentation of London Hilton Hotel

Geographic segmentation involves targeting the consumers in regards to their Geographic location; this can be on a national or an international platform (Kim, KiM & Kim, 2009). The London Hilton hotel geographic segmentation is more focused on the local preference and the Hotel’s location. London is a city that has a big share of both domestic and international travelers, many travelers find the city attractive and for this reason the city enjoys a high number of visitors each and every year (Meng & Elliot, 2008).

The London Hilton hotel is situated near attraction sites like theaters and Hyde Park. Several travelers are attracted to the city of London for several reasons, for example, the fact that it is near the commercial center and has many financial institutions. The strategic location of the London Hilton hotel has helped the luxury hotel in marketing its services to business travelers who attend conferences or even business meetings (Kim, Lee & Yoo, 2006). The rooms and lobbies at the hotel are designed to suit in regards to the Hotel’s location.

b. Demographic segmentation

In the demographic segmentation, different variables are used, for example, gender, life cycle, age, income and lifestyle (Oh, 2003). The London Hilton hotel targets a customer segment that represents the middle and the senior aged professionals who have a very high level of income and belong to the upper social class. In addition, the London Hilton hotel targets the individuals that pursue a luxury lifestyle, for this reason, premium prices are charged for the products and services that are perceived to be of very high quality.

The main reason the London Hilton Hotel has premium prices is because the hotel sells intangible benefits to its consumers. Some of the most prominent benefits include the sense of achievement, and a luxurious environment (Hilton Worldwide, 2015). The London Hilton hotel also targets families, the exclusive family packages that are offered by the hotel allow people to bring their families for vacation. The hotel offers different family amenities, for example, swimming pools, fitness centers and children’s play area.

c. Psychographic segmentation

Psychological profiles are often used as add on to the Geographic and demographics, and they provide additional information concerning the demographical and the psychological segmentation (Porter, 2009). The London Hilton hotel usually targets the ambitious individuals who have a deep interest of expressing their high status and achievement by staying in five star hotels that are offered through premium prices. The city of London is known for its highly recognizable social class, rich people stay in different places. They also like eating in different places and do not want to associate with the lower class, and they also want the best of everything so that they can show off with their lifestyles (Hilton Worldwide, 2015). People who stay in the five star hotels belong to the elite class, compared to three star hotels where the middle income earners can comfortably stay, the premium prices at the London Hilton hotel serve as a cutting edge between the upper and middle class.

Recommendations

 

a. Improve check-in

To improve the guest experience, the London Hilton hotel should improve its check in by designing effective practices that will eliminate the traditional check in process (Siguaw, Simpson & Kasikci, 2006). The check in process should be made in such a way that guests coming from different places can be able to complete their procedures while en-route to the hotel. Coordination is very important in this activity, which is because the guest is booked in even before they arrive at the hotel (Sminia, 2014). It is important for the hotel to be notified that a guest is on their way to enable them to deliver significant things that the customer may require during his/her stay.

b. Maintain high quality standards through monitoring

Even though the London Hilton hotel is known for its ability to maintain high standards, there is a big room for improvement in this hotel (Zheng, Youn & Kincaid, 2009). Direct monitoring should be made mandatory at the London Hilton. The hotel top manager should travel frequently from one property to the other to check on the standards of the hotel. To ensure that the hotel complies with the chain’s high standard, it should be paramount for the vice president of the hotel to routinely examine the hotel. The London Hilton hotel should involve an outside firm to inspect the hotel (kim & Kim, 2005). The top executive should meet regularly in order to update on the chain’s operating standards. The management should be able to obtain input from the focus groups, guests and general managers; this will help them to incorporate modifications as is needed. The organization should employ an array of training methods, which are aimed at training the employees and making sure that they are able to meet the expected standards (Wu & Liang, 2009). The hotel managers should be able to conduct quality assurance programs and to train their employees.

Conclusion

The London Hilton hotel is one of the best luxury hotels in the city of London owing to its ability to impress customers by providing them with quality services. The hotel’s main product is luxurious accommodation, which is characterized by spacious guest rooms and suites. The hotel has been able to remain competitive by offering its customers with an unforgettable experience. Its location is ideal for attracting ambitious individuals who have an interest in status, families and wealthy business people. To improve on its services, it is important for the London Hilton Hotel to maintain high quality standards through monitoring and improving their check in.

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