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. 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. 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 Needs
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 Hotels' customers consists of the following geographic, demographic, and behavior factors: Geographics
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. Demographic
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...
References: Loveman, G. (2003). Diamonds in the data mine. Harvard Business Review. Retrieved April 9, 2006 from http://harvardbusinessonline.hbsp.harvard.edu/
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