Hilton Marketing Strategy & Marketing Mix (4Ps)

Published by MBA Skool Team, Last Updated: November 25, 2017

Marketing Strategy of Hilton analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Hilton marketing mix, help the brand succeed.

Hilton marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.

Let us start the Hilton Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:

Hilton Product Strategy:

The product strategy and mix in Hilton marketing strategy can be explained as follows:

Hilton group provides the variety of hospitality services across the world through its hotel chains. Luxury hotels chains, focused services like Hilton Garden Inn, executive services like extended stay suites and vacation hotels etc are a part of its marketing mix product & service strateg7. Loyalty program called ‘HILTON HONORS PROGRAM’ is among the special services for loyal customers. Hilton’s target segments are the business segment with convention and leisure segments as well. For expanding the business Hilton have collaborated with airlines, car rentals, online platform, cruises, shopping and dining outlets, rail travels and financial institutions like American Express for easier payment methods. With different tier membership of Blue, Silver, Gold and Diamond, guests can access Hilton’s services at subsidized prices. Among this ‘Diamond Membership’ is exclusive among all. The services of the hotel chain are maintained by customer relations via feedback and satisfaction index.


Image: Wikimedia


Hilton Price/Pricing Strategy:

Below is the pricing strategy in Hilton marketing strategy:

Being executive service provider Hilton’s targeted customers are an exclusive segment of society.

The cost of different types of hotels by Hilton group serves for the specific purpose. Just like Hilton Resorts are situated at beach/lakeside for the different experience than airport hotels. With this, all exclusive hotels, group has always maintained exclusive price segment. In India, the price range of single room of Hilton hotels is from 5000 to 35000 per night considering Indian metro cities. The price range varies with the value-added services as extra wifi, parking, food, exclusive services of guest cost get accumulated. Premium prices are calculated with the premium cost for value-added services like spa, restaurant, breakfast and dynamism services. The exclusivity of the brand is maintained by its exclusive customer segment pay premium tariffs.


Hilton Place & Distribution Strategy:

Following is the distribution strategy in the Hilton marketing mix:

Hilton presence is worldwide with 103 countries with more than 5100 properties. The group has shown the considerable growth with time. Starting from the US, Hilton has focused on western countries as the group targets exclusive segment of the society. With time the group is focusing on new emerging markets like India and China. With the growth in international business in new emerging markets luxury service provider is expanding their business in this country. With different brands, Hilton group has different marketing as well as distribution strategies. The services provided by Hilton group has always focused on best services resulting in selecting the better location for setup of new hotels.

Small town, metro business hotels, airport hotels, luxury hotels and Holiday and vacation hotels are some of the hotel chains according to its requirement.


Hilton Promotion & Advertising Strategy:

The promotional and advertising strategy in the Hilton marketing strategy is as follows:

The Hilton group is the well known brand in the hospitality industry for a long time. The group have extensively focused on the exclusive services and customer satisfaction. The target customers are business customers all over the globe. The group have collaborated with many business firms, multi-national companies, institutes and various groups of their booking on priority. Also, The Hilton group has collaborated with Payment Banks, different restaurants for the variety of food provider and much more resulting in more reach to the Hilton hotels which is among promotional strategies of the group. Other marketing is done with the content of premium magazines different customer review websites.


Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Hilton.


Physical Evidence:

The Hilton group hotels and resorts have great reach and presence of its working properties across the globe. The group has tied up with many hotel booking chains and websites to increase its reach and evidence in the market. When it comes to exclusive hospitality market, ‘The Hilton group’ is among famous hotels hotel places. Manipulation of customer demand by converting it to hospitality services. Even the group is among the market leaders; there is tough competition in the hospitality sector. With the variety of locations and type of services, the Hilton group carry a lot of weight in the market.


People:

Target market and people directly related to this business. The hoteling business worldwide only depends on the loyal customers and upcoming market customers. Hence to maintain this loyalty, the hotels need to maintain its services, qualified staff and market image. As discussed above targeted customers are business executives hence to maintain the customer base it's important to provide the hospitality services in which The Hilton group has successfully served. Running support desk, customer services, and organizing different entrainment events for customers are some of the strong bases of Hilton success.


Process:

The systems and processes of the Hilton groups are considered as one of the best management hotel chains in the world. The flow of the processes, services to the customers of Hilton group is consistent. Due to reliable processes and maintained supply chain management of the group has helped to minimize the operating cost. Distribution system, service flows and booking via different web portals helping ‘The Hilton Group‘ to maximize the revenue resulting from maintaining its Market leading position. Hence this concludes the marketing mix of Hilton.


About Hilton:

Hilton is one of the largest hotel chain and fastest growing hospitality companies in the world. With more than 5,100 properties with nearly 838,000 rooms in 103 countries, Hilton is recognized as the best hospitality service provider in the world. Hilton as global hospitality company has consistently provided high-end hospitality for last 100 years. With 14 world-class brands including ‘Hilton Hotels & Resorts’, Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Canopy, Curio Collection by, Tapestry Collection and many more. Hilton group is also known for its strongest loyalty program worldwide. Hilton has won “Fortune 100 Best Companies to Work For”.

Hilton stands for its Stylish, forward-thinking global leader of hospitality. Innovation, approach to products with amenities and services made Hilton one of the leading competitor in this industry.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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