Increasingly Competitive Business Environment

Published Date: 02 Nov 2017

INTRODUCTION

In the hotel industry, marketing sales are often thought to be the same, and no wonder. The sales department is one of the most visible in the hotel. Sales managers provide prospective clients with tours and entertain them in the hotel’s food and beverage outlets. In this assignment which appropriate theories, concepts and secondary data in order to develop a research framework relating to the marketing and public relations. Firstly, I define the marketing definition and marketing mix. Then, marketing strategies has making and using a strong positive impact on profitability. Public relations are very important part of marketing communications.

Marketing strategies and public relation of ‘Hilton Hotel’ and the aim of this hotel is that many customers came in hotel as customer satisfaction, good meals etc. the purpose is that many customers attract on the hotel as clean, comfortable and secure accommodation. Preparation of food and beverages, conference and leisure facilities, congenial atmosphere, finance planning, organising, directing and controlling activities. SWOT Analysis as strength, weakness, opportunities and threats of hotel and PEST Analysis as political, economic, social and technical environment of hotel.

MARKETING

The marketing function is the study of market forces and factors and the development of a company’s position to optimize its benefit from them. It is all about getting the right product or service to the customer at the right place at the right 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.

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: The marketing orientation is a more recent business philosophy and one is that being rapidly adopted in the hospitality industry. Many companies have adopted the marketing concept. We know that four Seasons Hotels, Accor and McDonald’s follow this concept fully. The marketing concept holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than competitors.

Amazingly, niche opportunities sometimes remain available long after suppliers recognize the need. The marketing concept is frequently confused with the selling concept. The marketing concept starts with a well-defined market, focuses on customer needs and integrates all the marketing activities that effect customers. It meets the organizational goals by creating long-term customer relationships based on customer value and satisfaction.

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, pacakaging, 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.

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 4P’s- product, price, promotion and place.

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.

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. Finally, the marketing plan allows the marketing manager to enter the market place with an awareness of possibilities and problems.

ELEMENTS OF MARKETING PLAN

Current Situation: The first element is that current situation. Firstly, I should know that what we are doing and what marketing plan of the hotel.

Marketing Objectives: Secondly, is will setting some basic targets. There are all important goals, but I need to determine which ones you want to achieve first, second and so on and which are most easily and effectively executed.

Swot Analysis: The overall evaluation of a hotel’s strengths, weakness, opportunities and threats is called SWOT analysis. The external analysis looks at the opportunities and threats created by the environment. The internal analysis looks at the strengths and weakness created by the hotel. In strategic planning, the hotel matches its capability with available opportunities and takes action to minimize threats.

Competitor Analysis: Competition in every field, therefore it has many advantages and disadvantages. Mumbai is big city, huge amount of people live there. Many hotels build in this city. It is doubtful that most guests know or care about the room count of competitive hotels. Such a manager will develop strategies and tactics to improve areas of weakness and enhance already strong points. Every person wants to establish own hotel, so they improve the weakness and walk forward to own competitors.

Market Research: Marketing research is a process that identifies and defines marketing opportunities and problems, monitors and evaluates marketing actions and performance and communicates the findings and implications to management.

Market segmentation and sizing

Concept development and product testing

Price-sensitivity assessment

Advertising and promotions assessment

Market tracking

Customer satisfaction

Target Markets: no area of marketing plan surpasses the selection of the target market is importance. Target markets are selected from the list of available segments. Women travellers no longer represent a fringe market for hospitality marketers. They represent a solid and growing percentage of travellers. Observation of hotel advertisement shows that hotel marketers realize the importance of this segment.

Marketing Tools: Marketing tools is very important for marketing. I need to develop a sort of list of guests. Marketing research process consist of four steps defining the problem and research objectives, developing the research plan and interpreting and reporting the findings.

Monitoring: Monitoring the research data, draw conclusions and report the conclusions to the management. Monitoring is an important phase of the marketing process.

SWOT ANALYSIS

The overall evaluation of a hotel’s strengths, weakness, opportunities and threats is called SWOT analysis. The external analysis looks at the opportunities and threats created by the environment. The internal analysis looks at the strengths and weakness created by the hotel. In strategic planning, the hotel matches its capability with available opportunities and takes action to minimize threats.

Strengths

Strengths are the distinctive attributes and positive aspects which provide a significant market advantage. Strength is very essential part of the hotel. Strengths which the hotels organisation can build and develop, for example, present market position, and structure of operations, physical and financial resources, managerial expertise, staffing, image and reputation.

Hotel Management: Hotel management plays vital role in hotel work. We define management as the analysis, planning, implementation and control of programs designed to create, build and maintain the organisation structure. For example corporate strategy is concerned with deciding on the objectives and direction a business has chosen and the process of planning how that strategy work.

Hotel Organisational Structure: The hotel’s organisational structure is concerned with such matters as the division of task within the firm, position of responsibility authority and relationship between them. The management team consist of the hotel manager, one or more deputy or assistant managers and the heads of department.

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. Business amenities at this 4-5 star property include a 24 hours business centre, small-meeting rooms, a technology help lest. Facilities consist of a ball room and conference/meeting rooms. The staff can arrange concierge service, wedding service, event catering. Additional amenities include a fitness facility, valet parking and gift shops. Guest rooms features coffee/tea makers and complimentary bottle water. Bathrooms offers separate bath tubes and shower with handheld shower heads, phones, scales and bathrobes. Hotel facilities include washers/dryers, climate control and mini buses, housekeeping are available. Amenities available on request include hypoallergenic bedding cribs and rollaway beds are available. All guestrooms at Hilton Hotel are non-smoking.

Hotel chain: Hilton Hotel develops many cities. This is the most famous hotel in Mumbai city. Hotel chain is vital part of the strengths of the hotel. Hilton Hotel in many cities like as Uk,Canada etc.

Customer Satisfaction: Customer satisfaction with a purchase depends on the product’s performance relative to a buyer’s expectation. A customer might experience virus degrees satisfaction. If the product’s performance falls short of expectations, customers dissatisfied. If performance matches expectations, the customer is satisfied. If performance exceeds expectations, the customer is highly satisfied or delighted. Hotel strengths with customer satisfaction as air conditional- room, good customer service, good management team, location etc.

Image and Reputation: Image or reputation very important part of everything. This hotel management team behaviour very good, every customer talk very friendly and look after all customer needs. A hotel with strong market capability would probably show up with the ten market factors all rated as major strengths. For example, if a company wishes to increase its international business and its reservations through travel agents, the existence or developments of such a system would surely be viewed as strength.

Weaknesses:

Weaknesses are deficiencies in the present skills and expertise or resources of the hotels organisation, or its reputation, which needs to be corrected and for which action needs to be taken to minimize their effect. Weakness may stand in the way of achieving particular goals or objectives. Example of weakness could include a high cost structure compared with competitors or a high level of customer complaints.

Stress and Airport Hotel: This hotel is near the airport. High stress abounds in airport hotels due to a number of factors which are in some ways unique to these properties. High proportion of hotels around an airport means that the labour pool is usually smaller than the area requires, bearing in mind that more money could be earned doing unskilled jobs within the airport than working for a hotel as a chambermaid.

Shortage of staff: Staff tends to move around the hotels. Staff shortages are common, especially with hourly paid job-workers will follow the highest bidder. Airport hotels are busy on a 24-hour basis. Food outlets must be operated for up to 18 hours a day.

Parking problem: Car parks must be manned to avoid free parking for weeks on end. Delayed flights caused untold upheaval to catering outlets because of the large number of people descending on coffee shops and bars with very short notice. They are usually issued with a meal voucher; they are often cross with the delay. Children can cause havoc to other guests. Security needs to be a high standard as the high turnover of guest and the international factors add to the risks. This hotel’s close to the airport, the lake and university of Mumbai, so that case, parking problem naturally happens.

Competitors: Competition in every field, therefore it has many advantages and disadvantages. Mumbai is big city, huge amount of people live there. Many hotels build in this city. It is doubtful that most guests know or care about the room count of competitive hotels. Such a manager will develop strategies and tactics to improve areas of weakness and enhance already strong points. Every person wants to establish own hotel, so they improve the weakness and walk forward to own competitors.

Opportunities:

Opportunities are favourable situation which arise from the nature of the environment changes which will provide an opportunity to offer new or develop existing, facilities and services. Opportunities can be listed and classified according to their attractions and the success probability.

New product ideas: A number of hotels are taking advantage of the airline food has received over the years by providing their guests with takeout meals designed for the air traveller. Some hotel’s providing continental food. Many flights stops there and hotel manager develop new ideas for make better hotel to another hotels.

Recreation activities: The recreational activities are available as aerobics on site, basketball, bicycle rental, fishing, playground, racquetball, running, track golfing, horse riding, biking trails, swimming, tennis, volleyball, yoga etc.

New business strategy: A strategy is the establishment of hotel better than before. Improve the weakness as people give the job and parking space make large area. Recommendations design and facilities must be made which will satisfied the market needs researched in the previous sections, keeping in mind the strengths and weakness of the hotel.

Planning and development: The subject of feasibility study needs to be set within the context of the planning system as this can be a key determinant of success. The development control is the process through which applications for planning permission for development are determined. In order that profitability of the hotel is assured there is a requirement for pre-opening planning. First, Staff will be allocated to the reservations and responsibilities needs to be determined. Management of team work is very attractive.

Threats:

Threats are the converse of opportunities. Threats refer to unfavourable situations which arise from environmental change and which are likely to endanger the operation of the organisation. Threats should be classified according to their seriousness and probability of occurrence.

Licensing act: Licences are broadly divided into on-licences and off-licences. The typical on-licence will permit off-sales as well so a public house will usually be able to sell drinks for drinking on the premises as well as selling drinks to be taken away. A full on-licence permits the licence to sell alcoholic drinks for consumption on or off the premises and with or without meals.

Competitive analysis: This analysis deals primarily with the observable physical properties of a competition. It is doubtful that most guests know or care about the room count of competitive hotels. They do recognize differences in service level, cleanliness, staff knowledge and the responsiveness of the sales department. A competitive analysis must extend beyond inventory comparisons. An analysis of the competition means that within a feasibility study there must be an inventory of all accommodation facilities in the proposed market area. The hotels have been segmented by class and sector, then factors such as

Demand volume for the facilities;

Adequacy with which the competition satisfies the demand;

Strengths and limitations of the competition should be analysed.

Organisational goals: All organisations need clear aims and objectives which will determine the nature of inputs, the series of activities to achieve outputs and realisation of goals. A goal is a future expectation. It is something is striving to achieve. A goal may also refer to the more specific desired achievement for example to provide a given level of facilities and standard of service to its customers.

Risk assessment: The system must be based on an identification of risk areas throughout the catering processes and procedures. Typical areas include cleaning and pest control; ordering and specification of food; storage and stock rotation; food preparation and cooking temperature control; refusal disposal; personal hygiene and training. This assessment should be kept constantly under review. If the system is written down, it will assist in any due diligence defence.

PEST ANALYSIS

Pest Analysis is a scan of the external macro-environment in which an organisation exists. It is a useful tool for understanding the political, economic, socio-cultural and technological environment that an organisation operates in.

Marketing Environment: Unless hospitality managers understand environment, the hotel management cannot intelligently plan for the future. Thus, many organisations assemble a team of specialists to continually collect and evaluate environmental information, a process called environmental scanning.

Political and Legal Environment:

Marketing decisions are strongly affected by development in the political environment. The political environment is made of laws, government agencies and pressure groups that influence and limit the activities of various organizations and individuals in society.

Increased Legislation and Regulation Affecting Business: As product become more complex, public concern about their safety increases. Philip Kotler (2006), "Government agencies have become involved in the investigation and regulation of everything from fire codes to food-handling practices." Hotel taxes have become sources of revenue for local government. In many cases, hotel taxes are supposed to be used to support tourism. Hotel managers must make sure that those taxes designated to promote tourism are used effectively.

Changing Government agency enforcement: To enforce laws, congress has established several federal regulatory agencies: the Federal Trade Commission, the Food and Drug Administration, the Consumer Products Safety Commission. According to Kotler, "Another example is offered by the proposed sale of the Tarrytown Hilton in Westchester Country, New York. The property owners, Prudential Insurance and Hilton, put the hotel up for sale. Normally, hotel sales are concluded in private and without publicity. In that case, the chairman of Westchester’s County Board publicity announced that the country was considering purchasing the hotel as a temporary shelter for the homeless. This caused public outcry and forced the owner to cancel the sale of the hotel."

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.

INTRODUCTION OF THE HOTEL

Hilton Hotels are upscale, full service properties catering to business travel and leisure guests. They are a chain of over 500 hotels all over the world from Rome to Omaha. Hilton Hotels are enjoying a phenomenal growth in online sales. Hilton hotels are the place for you if you want a distinctive hotel. Hilton Hotel Corporation was created by Conrad Hilton who purchased his first hotel in Cisco, Texas in 1919. The first hotel which carried Hiltons name was opened in Dallas in 1925. In 1943 Hilton hotels became the first coast-to-coast chain of hotel in America, which was placed on the emphasis on the service of business customers. Then Hilton became the richest man in the world. In 1949 he opened his first hotel outside of the USA in Puerto Rico. Conrad Hilton died in 1979 and his son Barron Hilton followed and by the year 2000 Hilton Hotel Corporation had nearly 500 hotels around the world. Hilton Hotels Corporation is engaged in the ownership, management and development of hotels, timeshare properties and the franchising of lodging properties.

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, transporation 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. Bathrooms 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. In rooms, LCD television, Memory foam mattress, Pillow top mattress, Premium bedding, Rollaway beds, Iron, Phones. 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 wheelchair are also available.

Hilton hotels are known for featuring world class accommodations in the countries hottest destinations. The hotels are adding MP3-friendly alarm clocks, allowing guests to awaken to their own music. They are internationally known for their Hilton Meetings Business Centers. 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 Center. 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.

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 world’s 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).

SWOT Analysis of Hilton Hotels

HHC, like all major hotel corporations, is continuing to recover from the events of September 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

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

HHC also possesses solid integration features such as owning the companies that manufacture its furniture and has invested in online reservation travel enterprises

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.

CONCLUSION:

By studying national and regional industry trends, HHC will be able to take advantage of opportunities that will enable growth while identifying threats that may affect profitability. Growth in the hotel and hospitality industry will include a continued focus on gaming, international expansion and using all media to promote its products to potential customers. One recommended strategy for Hilton is to emphasize the importance of family in all its hotels, including the gaming and casino locations. Las Vegas has spent millions to attract families by adding children’s attractions as well as the traditional casinos for the adults. Most of the hotels have at least a small area dedicated to arcade games. However, some hotels have elaborate arcades, game areas, and child-care centers intended for those traveling with children (Hilton Hotels Corporation, 2007). Hilton needs to ensure they are right in the middle of this demographic of parents traveling with children. While the focus can still be on the high dollars that are tossed around in the casinos by the parents, it will be critical that the hotel have the facilities available that will attract parents with children to stay at the property. Since there is a greater demand and vacation time has become one of the few times that families are able to spend quality time together, Hilton must capitalize on this market segment.