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. In an attempt to become even more aggressive, the Hilton's decided to change its direction by venturing into the gaming industry.
The purpose of this case analysis is to address the key marketing issue for the Hilton Hotels. The marketing strategies Hilton should pursue in the hotel and gaming markets will be discussed and recommendations will be made. In addition, the use and implementation of the SWOT analysis will be incorporated throughout the discussion. Information will be provided from the case study and the use of secondary resources for support of the marketing strategies recommended for the Hilton Hotels.
In an attempt to become a more aggressive business operation, Hilton Hotels decided to change its strategic direction by venturing into the gaming industry. With this strategy came not only new opportunities but also large elements of risks and competition. In 1994 the growth in the gaming segment declined with gaming operating income down by 7% from 1993. The Hilton Hotels however had a 3% increase in occupancy from 1993 (Hilton Hotels Corporation, 2007)). In view of this, it is important to understand market needs and develop marketing strategies in tune with creating customer value for long-term performance (Tarasofsky, 2007) . A few of the key issues facing the Hilton Hotels is as follow:
The need to better target the needs of customer segments
To customize hotel services based on these needs
Competition with lower rates are a threat
Maximize market trends
Effectively attracting people to gaming segments through entertainment
Customer-centric marketing pervades the core of the hotel and gaming industries. Therefore, opportunities in marketing increase when segmented groups of clients and customers with varying needs and wants are recognized. Markets can be segmented or targeted using a variety of factors. The bases for segmenting consumer markets include:
Demographical bases (age, family size, life cycle, occupation)
Geographical bases (states, regions, countries)
Behavior bases (product knowledge, usage, attitudes, responses)
The profile for Hilton Hotel's customers consists of the following geographic, demographic, and behavior factors:
Hilton Hotels provides services to 130 nationalities at more than 150 locations.
Operates in more than 50 countries.
Major gaming operations in the U.S., Canada, Australia and Turkey.
Gambling budget market.
Gambling middle market
Premium high rollers
Creating entertainment to draw people to the gaming tables and slot machines.
Gaming market is very variable.
People are attracted to casinos that pay-out and offer incentives to play.
Identifying specific groups of customers by these factors and other dimensions will enable The Hilton Hotels to promote to them more effectively based on their needs. For instance, an increase in the cautious business spender, price-sensitive traveler would prompt a possible expansion of the mid-priced segment to accommodate and serve both work-week business travelers and weekend vacationers.
As pursuing the gaming market is relatively new to The Hilton Hotels, an additional strategy...
References: Hilton Hotels Corporation (2007_). Our people growth and innovation_. Retrieved April 16, 2008 from: http://hiltonworldwide1.hilton.com
McDonald, W. J. (1998). Hilton Hotels. _Cases in strategic marketing management_. [University of Phoenix Custom e-text]. Prentice-Hall, Inc. Retrieved April 16, 2008, from University of Phoenix, Resource: https://ecampus.phoenix.edu/secure/resource/resource.asp
Tarasofsky, Jerry (2007). The wired hotel: understanding the needs of your most valuable web site visitors. Hotel News Resource. Retrieved March 23, 2007 from: http://www.hotelnewsresource.com/article20136.html
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