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Your topic: Choose a British company, which you believe has achieved superior performance, as indicated by the competitive position, the financial performance(eg. profit or sales growth),the brand strength, or the speed of international expansion. Be aware that the structure of firms(consolidations, subsidiaries etc.)sometimes makes performance issues difficult to gauge.

Your topic's description: (1)Collect data/information regarding this company from published material (online or otherwise). (2)Use relevant concepts and models to: a. describe and analyse the marketing environment of this company b. evaluate the factors in the marketing mix that have contributed to this superior performance and those factors in the marketing mix that are crucial for the long-term future success of this company.see attachments

Your desired style of citation: HARVARD

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Refrencing Style:

Number of page: 12

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The Hilton Group of Hotels UK

[Writer Name]

[Institute Name]

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The Hilton Group of Hotels UK

Conrad Hilton established Hilton Hotel Corporation. In 1919, he acquired his first hotel

in Cisco, Texas (Cathy, 2010). In 1925, the first hotel which carried name of Hilton was started

in Dallas. Hilton hotels became the first coast-to-coast series of hotel in America in 1943,

focusing on the service of business consumers. Hilton hotel first went internationally in 1949

through starting a branch in Puerto Rico. Till 2000 Hilton had more than 500 hotels in world.

Hilton Hotels Corporation is identified in the world. As an important lodging hospitality

corporation, presenting customers and guests the finest services, accommodations, amenities and

value for leisure or business, Hilton presents the quality and amenities its name has motivated

since 1919. The corporation is an important franchisor of hotels. Presently the Hilton is observed

one of the service business‟s top competitors (Nick, 2011).

One set of marketing definitions suggests that marketing is primarily a business

philosophy that puts the customer first. From this perspective, the primary goal of hospitality

businesses should be to create and retain satisfied customers. This concept proposes that

satisfying customers‟ needs and wants should be at the centre of an organization‟s decision-

making process (Armstrong, 2001). Professional marketers believe that this customer focus is the

responsibility of everybody in the organization. Adopting this philosophy requires a total

management commitment to the customer, and companies that pursue this approach can be

described as having a customer orientation.

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Early definitions of marketing centered on the exchange/transaction process. Kotler

(2000) proposes that in order to satisfy people‟s needs and wants, products and services are

exchanged in mutually rewarding transactions generally, but not exclusively, using the monetary

system. Kotler originally suggested that this exchange process, now known as transaction

marketing, is a core concept in marketing, and is a „value-creating process which leaves both

parties better off than before the exchange took place‟. Another set of definitions suggests that

marketing is a management process aimed at delivering customer satisfaction. Examples of this

approach include the definitions offered by the Chartered Institute of Marketing, and the

American Marketing Association. Relationship marketing is the development of mutually

beneficial long-term relationships between suppliers and customers. In hospitality markets, a

„relationship marketing‟ approach has seen the major hotel groups focus their marketing

activities upon frequent travelers in an attempt at encouraging repeat and recommended business.

Microenvironment of Hilton Hotel

The micro-environment comprises of stakeholder groups that a company has common

dealings with. The style these connections expand can impact the quality, costs, and general

achievement of a business (Cathy, 2010). There are different issues in the micro-environment

like:

The Company

The management structure of the company is formed with managers in the different

departments working towards the same objective. They are in control of planning, organizing,

leading and controlling the organizational resources. Hilton International functions 403 hotels,

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with some 261 branded Hilton and 142 under the Scandic brand of mid-market. Under a

corporation contract, the North American based Hilton Hotels Corporation and Hilton

International share liability for the Conrad brand, which contains 17 hotels in 12 nations (Belch,

2008). A worldwide marketing coalition between Hilton Hotels Corporation and Hilton

International develops the number of hotels functioned through both corporations globally to

over 2,700 - over 500 of which are branded Hilton. Hilton International hires more than 71,000

employees in 80 nations. Dedicated to performing trade in a conscientious approach, aim of

Hilton is to bring a constructive advantage to the cultures in which it functions through services

of high quality, financial development, environmental security, involvement of society and

employment.

Suppliers

Connection of suppliers is an essential tool that will permit franchisees, their contractors

and designers to observe information of vendor about building, designing, and equipping a hotel.

People believe, if utilized, this tool will connect all of the key decision makers and therefore

enhance our market for new hotel development. Management of Hilton are pleased to contain

different vendors in the Hilton. Over the years they have recognised vendors that have supported

their franchisees develop their system to over 300,000 rooms, and they have been recorded as of

the exemplary service and great product they have constantly presented (Cathy, 2010).

Customers

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Obviously customers are important for sales. Managers should observe needs of

consumers and attempt to expect how these will grow so that they can meet these demands

efficiently now and in the future. To support recognise their consumers, companies are

increasingly attempting to collect data on them through systems like loyalty cards. Possible

buyers normally have different options and so can be capable to implement their power of

bargaining in connection to companies. Hilton has started the modern mobile service to make

sure consumers have the excellent potential methods of reservation and controlling

accommodation of their hotel, with relieve. "In this digital age it's essential that companies reply

to the latest requirements of consumers and now they can give them the expediency to choose

and book a hotel, change and access bookings and observe hotel information and images, as

away from their computer (Cathy, 2010).

Competitors

The achievement and approach of any company will depend on the level of competition

in its industry. In different markets one company is main. This is known a monopoly. If anyone

is in a position of monopoly this can permit that company to use the customer with

comparatively high prices and company can be capable to present an inferior service if

consumers have no other options. Whereas Hilton concentrated on the casino-hotels, Marriott and

Hyatt were developing in the market of luxury-hotels. To keep speed with its opponents, Hilton

invested $1.4 billion to modernize older properties throughout the late 1980s (Belch, 2008).

Barron Hilton also focused on solving the complication of his father's will. An increasing

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competition from the other hotel chains such as Marriott and Best Western, as well as a down

turn in hospitality industry slightly affected the company‟s earnings.

To understand the position of the company within the market we can use the SWOT

analysis and Porter‟s Five Forces Model to illustrate its position between its competitors.

SWOT Analysis

Strength

Strategy: recognized differentiation strategy.

•Structure: decentralized and flat structure.

•Style: participative and powerful culture.

Weaknesses

Plan: distinction plan requires being extra evidently communicated outwardly, inside

national and local markets.

Systems: formal systems outcome as of the detail pointed atmosphere and work.

Staff: seasonal hand needs ongoing aiming and preference of fresh staff.

Services: definite rooms need restoration and elevate as involves technical apparatus, for

example, the high speed Internet approach and laptop connections

Opportunities

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Market: lasting expansion subsequent to an era of slouch.

Contenders: no direct contest be demonstrate at present time, in the intending of five star‟

boutique hotel place‟ niche.

Suppliers: long-run dealings, strong based along with suppliers.

Guest Dependency: repetition of corporate, business bases on personal service and

quality, in a short except comfortable circumstance (Brotherton, 2010).

Threats

Market Entry: approach for a world, competitive sword to catch the marketplace along

with a corresponding product.

Replaces: wholly furnished and serviced business apartments trading on shorter everyday

costs.

Economy: revival as of short slump possibly take time

Porter’s analysis

Risk of Entry from potential Competitors: the risk of entry from potential competitors is

relatively low because of the high initial cost of establishing a hotel business and the fierce

competition among the existing hotel corporations.

Threats of substitute products: Hotel Hilton is Small lodges, Business hotels, Boutique hotels,

eco friendly hotels (Belch, 2008). But as Hotel Hilton holds a strong competitive advantage of

wide range of branches this threat can be considered as moderate.

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Bargaining power of the supplier: this can be considered low in terms of hotel Hilton as they

have a number of available suppliers for the resources to operate their business. Risk of Entry by

potential competitors (L o w) Bargaining power of Supplier (Moderate) Bargaining power of

buyer (High) Rivalry among existing established Firms (High) Threats of substitute products

(Moderate)

Bargaining power of the Buyer: Hotel Hilton has diversified consumer segment. As the global

hotel companies expanding their business rapidly, consumers are getting more opportunities to

choose their desired services from different hotels. So the bargaining power of the buyers is quite

high.

Rivalry among the existing competitors of the market: Hotel Hilton is now facing hardship to

win the battle against its competitors in the global hotel business. Marriott International (MAR),

Starwood Hotels & Resorts Worldwide (HOT), Wyndham Worldwide (WYN), Four Seasons

Hotels , Accor S.A, are some of the names of competitors of Hotel Hilton (Belch, 2008). So we

presume that Hilton has high rivalry with its competitors.

Macro-Environment

To understand the company further we should consider its Macro environment factors.

Macro-environment consists of the larger societal forces that affect the microenvironment, thus

conducting a PEST- Political Economic Socio-Cultural and the Technological environment it is

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operating in. PEST analysis helps the business to strategies their future business perspectives

(Cathy, 2010).

PEST

The external, environmental concerns that impact the Hilton are:

•Political: a steady situation where some impacts capability to produce income.

•Economic: the current depression has observed different hotel chains of smaller business-

oriented go into insolvency, as they do not have the infrastructure to help under-working

properties as the larger series do. Though recovery is starting, it can take some time earlier

business travel strategy limits are completely lifted and corporate travel returns to the similar

positions of the last three years.

•Social: the style about cost efficient corporate travel guides guests of hotel to look additional

value for money, which is where our differentiation strategy of added value comes into perform

(Cathy, 2010).

Technological: the installation for systems of 'on board' room reservations on certain aircraft

will need systems incorporation with the personal reservation system to Hilton. This will need a

high level of funds.

Marketing Mix

Product

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Product: better quality services came with through monitory own package, distinguished

as of contest character along with the complete brand plan have demonstrated to be a victorious

approach producing high levels of repetition business (O'Fallon, and Rutherford, 2010).

Promotion and Advertising: The mainly victorious traditional advertising will be along with

the Hilton. The web will as well be utilized in marketing actions. Public relation is deliberately

following a new channel for public relation side by side the conventional practices (Abraham,

2010).

Product pricing

Pricing plan has been coherent along with the distinction target, to offer contributed value

for a sensible rate as fought to dismissing and assessing their services and products (Abraham,

2010). Room costs quoted are net of service and tax, are every night, every room along with

continental breakfast admitted

Corporate single - £96.00;

Corporate double - £124.00;

Corporate double deluxe - £ 176.00;

Corporate suite - £225.00 (maximal tenancy 2 individuals).

Conference room costs are net of service and tax, quoted everyday utilization with coffee

breaks and tea (2) admitted

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The Riverview Conference Hall - £321.00;

The Riverview Boardroom - £261.00;

The Riverview Ballroom - £876.00 (O'Fallon, and Rutherford, 2010).

Place: service and product detail are sold to the guest through own direct marketing, selling,

advertisement and the Internet. Delivery carries comprise of international reservations systems

and travel agents.

Future Critical Success Factors

Price

Hilton's immediate competitors are being targeted with the pricing strategy widely known

as “Price Commitment”, where the effort is to change customer's perceptions and lift sales.

However, efforts of reducing the price without decreasing the quality can give Hilton a

competitive edge.

Place

The demographics for a diverse business such as Hilton present a broad range of

customers. Hilton's target market comprised the regular basis business traveller, leisure

travellers, families on vacation and the meeting business segment (Barrows & Powers, 2008).

Property, equipment, plant and lease premium prepayment diminished through £94.1m. The

main subscriber to the reduction was a £65.7m consequence of exchange causes. The Group as

well inducted £15.7m to amend its hotel portfolio which comprised an extra £7.8m on

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construction of Studio M, a fresh 365-room hotel in Singapore that will start throughout 2010

(O'Fallon, and Rutherford, 2010). The proportion of £8.0m shines the Group‟s tight

managements on capital expenditure.

Promotions

Hilton‟s promotional activities are slower than the competitors, thus appealing to a

smaller audience. Grammy Vacation Giveaway, 2006 AVP Pro Beach Volleyball sponsor, Hilton

Harmony Tour in support of music education, and Hilton Competitive Advantage which markets

how the Olympic Team members sleep at specialty Hilton rooms (O'Fallon, and Rutherford,

2010).

Product

International travel specials, Food Network travel packages, Discovery Kids packages,

“Romance Packages,” and family vacation specials. Online resources to see all Hilton products

and in-room amenities including floor plans of personal and group event room as well as weekly

email offers, specials, news, and promotions, reservations, travel and entertainment options

(Abraham, 2010).

Because an E-business has business and consumer relations in many locations it is that

much more necessary to avoid conflict in any of these areas. Hilton Hotels after many years has a

name it can be proud of. It has expanded its horizons from a small locale to and international

business with a well known reputation. When comparing the policies and procedures between the

brick and mortar locations to its applicable e-business Hilton Hotels has simply expanded its

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possible services to include those persons or businesses who would like to business in a higher

paced environment. As such it becomes imperative that the previous guidelines are not ignored.

The possibility becomes that much more prominent as Hilton introduces more of an international

influence (Brotherton, 2010).

Conclusion

Hilton Hotels have numerous strengths comprising their differentiation strategy, well

trained and highly skilled employees and flat structure (Brotherton, 2010). Hilton‟s weaknesses

engage the requirement to communicate with their strategy extra obviously in the exterior

atmosphere, Hilton‟s high worker consider and training requirements as of seasonal variations.

An economist, Edith Penrose, explained that various skills and abilities possessed by firms could

lead to superior performance. By analyzing the external and internal factors of Hotel Hilton we

can develop a strategy which will be valid, consistent and sustainable. Based on our previous

data we have figured out some of the main factors which might play important role in terms of

building future strategies

Location based competitive advantage: Hilton offers unequalled business, conference

and leisure facilities in all the major city centre, convention and airport. This is complemented by

the sustained dedication to high standards of quality and service – a commitment which will be

recognized by the consumers thus will increase the occupancy rate in Hotel Hilton.

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Efficient Human resource Management: Hilton had shown great interest in

development of skilled personnel. They conduct training program, awareness program, and adopt

several methods to enhance the service quality of its employees. An efficient and effective work

force will ensure higher customer satisfaction and higher revenue.

Esprit Strategy: They should aloe their “Esprit strategy” to grow not only from the HR

functions but also by other functional units. They can also outsource the operation of the “Esprit

club”. Eco-friendly hospitality: the current trends of hospitality have changed up to great extent.

Travellers and consumers are seeking eco-friendly hotel which may enable a new market

segment for Hotel Hilton. If Hilton adopts the sustainable hospitality methods, then they will be

able to reduce their operational cost and obtain economy of scale.

Hilton is moreover gradually more depending on the franchisee-based model for

development. This allows the corporation to get income without acquiring any further costs to

buy real estate and makes hotels. This plan further allows the corporation to focus its attempts

towards making a powerful brand in spite of purchasing real estate. Through observing regional

and national business styles, Hotel Hilton will be capable to take benefit of chances that will

allow development as recognising threats (terrorist attack, SARS) that can impact productivity.

Development in the hospitality and hotel business will contain a constant concentration on

gaming, international development and applying all sources to encourage its products to possible

consumers. By utilizing its competitive strategies along with the effective service of efficient

work force Hotel Hilton will be able to strengthen its position at the global hotel industry.

Currently the Hilton is seen one of the top competitors in service industry. Although,

Hilton hotels is a very successful company both at their brick and Mortar and their online sites,

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Hilton would be best served by creating or utilizing online interactive software for training.

Secondly, we recommend an expansion into new markets utilizing an e-business marketing

guidelines. This will enhance weaknesses found previously. Accordingly a survey of usage

online versus brick and mortar will provide additional insight into possible changes in the future.

Through studying regional and national industry veers, Hotel Hilton will be capable to carry out

benefit of choices that will allow growth whereas naming threats that possibly affect abundance.

Expansion in the hospitality and hotel industry will comprise an extended base on gaming,

international growth and utilizing media to encourage its products to possible consumers.

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References

Abraham, Pizam. (2010). International Encyclopedia of Hospitality Management, Edition 2,

Publisher Butterworth-Heinemann, 312-325

Armstrong, M. (2001) A Handbook of Personnel Management Practice, 8th edn. London and

Milford, CT: Kogan Page.

Barrows, Clayton. Powers, Tom. (2008). Introduction to the Hospitality Industry. PublisherJohn

Wiley and Sons. Pp 294-296

Belch, George; (2008). Advertising and Promotion: An Integrated Marketing Communication

Perspective; Publisher McGraw-Hill Australia; ISBN0074717669, 9780074717660. pp

354-358.

Brotherton, Bob. (2010). An introduction to the UK hospitality industry: a comparative

approach. Publisher Butterworth-Heinemann pp 161-163

Cathy, A. Enz. (2010). the Cornell School of Hotel Administration Handbook of Applied

Hospitality Strategy, Publisher SAGE, 545-555

Nick, Dalton. (2011). Frommer's England and the Best of Wales 2012, Publisher John Wiley &

Sons, 412-422

O'Fallon, Michael. Rutherford, Denney. (2010). Hotel Management and Operations. Publisher

John Wiley and Sons. Pp 136-138