Hilton Hotels in the Middle East Product Differentiation - Case Study Example

[HILTON HOTELS IN MIDDLE EAST] Table of contents Abstract………………………………………………………4 Introduction………………………………………………….5 Market theories………………………………………………5 Production concept…………………………………………..6 Product concept……………………………….……………..6 Sales concept……………………………………………….. 6 Relationship marketing………………………………………6 Social marketing………………………………….………….7 Marketing strategies …………………………………………8 Product differentiation……………………………….………9 Data base marketing……………………………….……..…..9 Market differentiation……………………………………….10 Market segmentation………………………….…….………..11 Market positioning…………………………………….……..11 Conclusion……………………………………………….…...12 Bibliography …………………………………………………13 Abstract There are a variety of factors which should be considered in the development of an effective market profile of any company. These issue range from the top market positioning to the market differentiation of the products all work to ensure that the company get and retain the customer base. This case study paper analyses the gist information needed for the successful operation of the company. Introduction The Hilton hotels have their history dating back to the year of early twentieth century. Studies have shown that the inception of the Hilton group of hotels was done in the year 1919 by the first founder member cum owner called Conrad Hilton (Porter & Kramer, 2007). It is worth noting that the plan of purchasing the hotel was a make up from the original plan of purchasing the Mobley hotel in Texas. Since its purchase and inception, the business has seen tremendous growth strategies in the region and so far it has expanded to cover the global market. Currently, the Hilton group of hotels boasts of market coverage of more than seventy six countries world wide. This means that their market coverage is one of the largest and most complicated as far as the provision of exclusive hotel services are concerned. In the Middle Eastern countries, the hotel is very important in the coverage and provision of the hotel services and products in the larger Arabian countries. This has included such countries as Egypt, Saudi Arabia, among other non Arabic countries like United Kingdom and Scandinavian countries (Porter & Kramer, 2007). Currently, the hotel group of companies has rolled out their market operations plan to cover all the cultural and the diverse global markets. The introduction and maintenance of the local languages in their websites for such markets as the United Kingdom, Japan and Germany pin points to the diversity the company covers in their market operations. The global market coverage has therefore seen the specific regional and the country branches offering Taylor made products, specific to the countries of operation so as to capture the whole markets and to embrace the different cultural diversity (Arvidsson, 2005). The global market coverage has therefore seen the specific regional and the country branches offering Taylor made products, specific to their countries of operation so as to capture the whole markets and to embrace the different cultural diversities associated with the company markets. Market theories Marketing is the process where the finished product ready for the consumption by the consumer is presented to the prospective buyers so in a special way so that they can be able to make informed choices on what to buy. It also involves the showcasing of to finished products in the market for the availing of product variety to the consumers. Marketing process takes into account a series of processes and steps which must be followed for successful placement of the products in the market. Production concept, product concept and selling concepts are the first stages of marketing process. Moreover, marketing concept and the social marketing concepts are the last stages in the successful making of any given product or service to be sold in the market (Carroll & Buchholtz, 2008). Production concept The production concept is aimed at ensuring the efficiency with the highest profit maximization possible in the market of their finished product. Therefore, it entails the strategies that aim at producing those products that are cheap and in the most efficient way possible. It also considers the most appropriate way of distributing these products to the markets and consumers. It is important to note that the product producers would try as much as possible to keep the costs to the lowest levels and revenues at the highest levels possible. This would ensure the highest profit margins in the market (Buehler, Freeman, & Hulme, 2008). At the Hiltons hotels in the Middle Eastern countries, the theory has been effectively utilized by the increased levels of franchising of their hotel services. In many cases, the hotels have put in place strategies to ensure that their customer do not lack places of accommodation and would collaborate with the like minded and similar quality hotels to provide adequately their services. This has helped the company to keep the low costs down and improve on their profit margins. Product concept Many companies, Hilton hotel groups of companies included also takes a keen note on the quality of the product which they offer to their customers. The product concept therefore would see a scenario where the customers would be more satisfied with the kind of products and services which offers the highest quality and variety of options during consumption. This means that they are very sensitive in the selection, consumption and evaluation of the products which would give them the best performance once they use them. Many customers would therefore be in the need of consuming the products and services which will call for the positive evaluation in the post consumption stage. Sales concept Hilton hotels prides in offering the best and exclusives services to their consumers across the globe. The pioneering in the provision of the airport hotels by the Hilton group of hotels is in itself a demonstration of the commitment of the company to give satisfactory services to their customers. To attest the establishment of the project, it had been found that many customers who missed the flight would like to take refuge in such hotels (Naranjo-Gil, 2004). In addition, people who would like to catch the first flights also prefer spending closer to the airports so as not to be inconvenienced by the circumstances. This meant that the Hilton group of companies was able to offer the highest and most satisfying products and services in the markets. Relationship marketing Hilton hotel has put in place strategies various mechanisms to ensure that the customers get the best in their products and services. The level of relationship marketing which has been used in the Hilton hotels premises are what can be easily judged for a successful venture. Through the provision of the best hotel services at the highest standards on the global scene, the company has seen a lot of repeated purchase and use of the products in the market. They see to it that their company profile is made out and strongly built on the customer confidence and the repeat purchase strategies. The company has placed voluminous advertisements both in print and online digital media to help in the attraction of the customers (Katz, 2010). The use of the local newspapers, billboards, magazines, journals the of late the television and the internet have seen the company set and occupy its right niche in the market. Most importantly, it would be imperative to take note that the process of selling and advertising the products have been decentralized to the local regional levels so as to offer the tailor made products to the people. The hotel and its constituent branches have been employing every qualified personnel who end up giving similarly high quality services. Marketing strategies also involves the locations and positions of these hotels, Hilton hotels are located in serene environments that are attractive to most tourist and visitors who prefer such places. Recreational facilities are also classic in the way they are developed that is they are well spaced within the hotel and offers the best of the atmosphere that these customers need of , these are some of the strategies that have been put in place by Hilton hotels across the branches that are in many countries of the world. Social marketing Social marketing involves giving back the community an the customers by the company which serves them the Hilton hotels just like many other companies have put in place strategies which have seen them reach the community ion many areas of need. Notably, as this hotel tries to satisfy the consumer need in terms of economical aspects it has done much to the society as far as social responsibilities is concerned. Some of the areas that the hotel has done a lot are its efforts to build community based schools that have been able to assist these children from the less disadvantaged pupils from such communities. This has helped to ensure that more students who are not able to access education facilities due to the distance and the location do not any reason of not attending education. The second and very important are where the company has made progress is the provision of English language course that helps in ensuring that this language is improved at the local level. This facilitates easy and efficient communication of various people and increase the level of literacy in these communities. Free eye sight treatment, has been implemented by the hotel in its plan to ensure that the cataract that is in essence affecting most people in the community is cured. In this role the hotel programme has initiated this programme and it is done without any payments which are made by these local people (Carroll & Buchholtz, 2008). Environmental conservation has not been left behind either , the hotel have initiated various methods of ensuring the sustainability of the environment, this has been the depicted by various constituent branches winning the green movement awards from their concerted efforts to conserve the environment, some of these branches of hotels include Conrad Bali and Conrad Cairo. The hotel has also developed a very vigorous programme of taking care of the world life. This programme has been cited to have done much to conserve the wildlife especially through the rescue programme, this has helped to take cater of these animals and also ensure sustainability of these endangered species of the animals in the Middle East countries and other countries like the preservation of the kangaroo in Australia (Thomas, 2008). As have been seen the hotel has perfected its market development concept and this has ensured their competitive edge in this hot industry, that is, it has taken care of the basic principles that are aimed at ensuring the business thrives, Hilton hotels therefore has perfected the fact of ensuring development of proper marketing properties (Dooley, 2006). This has been in consideration to the social responsibility of touching the lives of those people around it. This has ensured that Hilton hotel has remained the best of the hotel services provider in this particular industry. Marketing strategies In the market where the Hilton hotels operate, it is important to note that their market structure is composed of various components. The most sticking factors to be considered is the high level of competition in the provision of the same services. The Hilton hotels company must therefore put in place the relevant marketing strategies which would ensure that they can give the highest possible number of customers. So as to remain relevant and to improve the profit margin levels, then various methods must be put in place to ensure that the company remains relevant to the people and the customers in general. Market differentiation Some of the strategies which the Hiltons Company has put in place include the product differentiation and discrimination. Similar results have been obtained is the provision of their services. Moreover, the market differentiation and segmentation have seen the company to give majority of the people improved services and t the whole market coverage. Notably, the provision of the high quality services and goods also comprise the company policies and objectives which are used for the guidance of the daily operations of the company. Database Marketing The Hilton hotel companies have put into use the modern technology where the customers can book for their accommodation rooms online in the Middle Eastern countries. These processes have not only brought about a lot of efficiency in the operations and the company but it has also ensured that the company can effectively carry out the data base marketing (Katz, 2010). Data base of the room applicants who book for their rooms online have been easier to achieve as their records and details could easily be got from the data bases. Such customer information are very pertinent in the development of the customer Taylor made products as the customers would be able to provided all their details and needs online. Product differentiation Product differentiation is the provision of quiet different but products to the people by the same supplier. Products provided by the same supplier can differ in terms of the quality and quantity of the packages. The different qualities and the quantities are then sold differently and at different prices. This ensures that the company strategically positions itself and its products in such a way that it covers all the parts of the market (Christina Spurgeon & Spurgeon, 2008). The introductions of more flexible products and services at the Hilton hotels in the Middle Eastern countries have seen the company capture all the market sectors. Studies show that the kind of products services which the companies have put in place can be differentiated into various categories. The first class hotels provide in the Abu Dhabi city centre and the ones provide in other places in the city suburbs are quit different not only in the quality of the products abut even in terms of the prices and values of the products. This is done to ensure that all the categories and all the classes of people care taken care of. The rich therefore are given very high quality services because they can afford the services. Those who are not very rich but would like to access the services of the company can as well get them in the middle class hotels situated in various places. Market segmentation Market segmentation has been a major issue in the development of the successful company activities at the Hilton hotels in the market. Market segmentation is the process where a given group of people with similar needs and most probably living in the same place, to be provided with the same goods and services as a way of empire selling of the products (Cappo, 2003). The market segmentation is done in various ways and thus could take various forms. The uses of the different social classes and the demographic factors have been a very common and important way of carrying out the market differentiation. The use of cultures and the psychographic grounds have also proven to be very functional in addition the market differentiation using the reference groups. It is however worth noting that in the real life situation, a company cannot just decide to imply any given market differentiation strategy but there would be need to closely analyse the market and make out what the market contents would contain (Gitman & McDaniel, 2009). In the operations of the Hilton companies, the many branches opened and operating in the whole region points out to the need of the company to segment the market and reach more people in the market provisions. Market positioning In some other cases, market positioning has also been used in the efficient provision of the company products and services. Market positioning is the situation where the company takes the possible efforts available to ensure that they create and maintain a positive image of the company in the minds of the consumers at all time. Market positioning is very important for each and every company which would mind about the level of competition which they are facing in the provision of the products in the markets. A good positive positioning of the company profile would mean that more and more customers would be able to turn up to purchase from the business (Katz, 2010). Hilton hotel as a company has greatly invested in the company positioning as a strategy to ensure that it sets itself apart for the stiff competition. Hilton has employed such strategies as the Class, Perception, and the personal learning to make the company position itself in the best way possible. In addition the company has also ensured that the good memory and customer emotions of the customers are well taken care of. The provision of high quality services in the Middle Eastern region underscores the whole process. Relationship marketing Relationship marketing has been the focal point of the Hilton company operations in the Middle Eastern countries. The introductions of the philanthropic support to their customers in the Middle Eastern ountries have ensured that more and more people are interested in the company. The initiative which saw the provision of strategies to give the company the opportunity to support and take part in the public initiatives which are began and maintained by the customers as a way of community service support have ensured that people do repeat purchases and this translates into the maintenance of the required customer base in the company market profile. The involvements of the customers have also ensured that the companies get, develop and maintain the long term relationship between the customers and the company hence the development of the relationship marketing. Conclusion The illustrations that have been explored in this paper therefore reveal that Hilton group of hotels is an international company that has perfected the art of proper market strategies among many other international companies across the world. Bibliography Arvidsson, A. (2005). Brands; A critical perspective. Consumer and Culture , 1. Buehler, K., Freeman, A., & Hulme, R. (2008). Owning The Risks. The Revolution strategy , 101-111. Cappo, J. (2003). The Future of Advertising: New Media, New Clients, New Consumers in the Post. New York: Crain Communications. Carroll, A. B., & Buchholtz, A. K. (2008). Business and Society: Ethics and Stakeholder Management. New York: Routledge. Christina Spurgeon, C. S., & Spurgeon, C. (2008). Advertising and new media. London: Routledge. Cronin, A. M. (2004). Advertising myths: the strange half-lives of images and commodities. New York: Routledge. Dooley, D. (2006). BTEC National Business, Book 2. Port Harcot: Heinneman. Gitman, L. 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