Hilton Hotels-Case Study
Topics: Hotel, Casino, Marketing / Pages: 5 (1034 words) / Published: Jun 6th, 2006

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:
• 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
• Convention Market
Behavior Factors
• Creating entertainment to draw people to the gaming tables and slot machines.
• Gaming market is

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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