Marketing Plan - Coursework Example

Name: Instructor’s Name: Topic: SЕRVIСЕ MАNАGЕMЕNTS Course: Date of Submission: MARKETING PLAN Marketing plan is the symbol and essence of purposeful management, it can be defined as the formulation of a written plan to guide: some marketers contend, the future operations of the marketing functions, the principle of management by objectives and links in a practical way the customer oriented marketing concepts. Additionally such a plan puts an end to the perceptive approach to decision making and to casual planning to meet day to day challenges. The simplest definition of marketing is; a strategy that devises while anticipating the needs of the consumer with an aim to keep and retain them. The process of marketing includes a series of activities related to; making marketing strategies, broadcasting, giving good customer services, promotions both online and offline among others. This essay is aimed at exploring the various concepts of marketing and discusses a strategic plan for the Hilton hotels corporation which conforms to the SOSTAC model (Stern and Adel I, 2008). Figure 1: SOSTAC Model source Hiebing, Roman G. and Scott W. Cooper (1990) The Successful Marketing Plan: Brief Edition, NTC Business Books: Lincolnwood, Ill. A marketing plan is generally made for a 12 month period. It is organized in the order it will be read, a firm may opt to place a premium on a brief marketing plan that is clearly written. It is advisable for an organization to purpose a single set of objectives and action programs (Hiebing & Scott, 1990). For the case of Hilton hotels the marketing plan model is structured as follows: Situation analysis here the marketing plan shall begin with a review of the current situation covered by the plan. This review shall include the product sales trend, past promotional support, competitive positions and the market strengths and weakness. Generally the situation analysis shall involve the analysis of internal audits, external audits and assessing opportunities and threats (SWOT analysis). Objective analysis this includes both quantifiable and subjective, measurable targets and all assumption up on which they depend. Typical objectives include market share, sales, awareness and profits etc. objectives are outcomes and cannot be directly controlled. The objective analysis shall include the analysis of corporate objectives of online marketing, detailed objectives (tangible and intangible benefits) and online value promotion (Baron & Jack, 2010). Strategy definition this is a broad directional statement describing how marketing objectives are accomplished. Within the marketing plan the marketing strategies represents the first overview of the various marketing tools and how they can be used to achieve the marketing objectives. Marketing strategies are descriptive. The strategy definition shall revolve around investment and commitment to online channels, marketing and product positioning, target market strategies and change management strategy (Hopkins, 1972). Tactics plans this involves coming up with the tools to implement the strategies. It involves coming up with the right communication tools and how to use them. It also involves coming up with the right message to communicate and consistence across different tools and messages. The tactical plan involves the products, promotion, price, place and people (Lehmann & Russell, 1997). Action plan this involves defining the detailed actions, timing and the implementation of the marketing mix as appropriate to the situation. This section of the market plan relies on the foundation of a strong situation analysis. The action plans are aimed at specifying tasks, resource, partnering and outsourcing, budget including cost for development promotion and maintenance. It also involves implementing the risk assessment, legal issues team, organization and responsibility and development and maintenance process (Ashworth & Henk, 1990). Control plans they can also be called contingency plans. They are useful when assumptions underlying the market plan have a material degree of uncertainty or risk. The main aim of control is to identify a measurement process and metrics covering: business contribution, marketing effectiveness and online marketing effectiveness. Marketing Plan of Hilton Hotel Corporation Situation analysis of Hilton hotel The Hilton hotel corporation is a leading hospitality chain of luxury hotels. It consists of more than 3500 hotel spread across more than 80 countries around the world. The revenue of the hotel rose from USD 3.8 billion to 8.3 billion in 2002 and a growth rate of 16%. This growth rate places it higher than its competitors e.g. Marriott at 7% and Starwood at 5%. Through the years, Hilton has matured enough from its political support and managed to expand its business to over 80 countries. The organization employs the use of environmentally friendly products in order to please customers such policies support different governments. The import duties paid by the Hilton Corporation adds a small amount to the GDP of various governments (Hilton Hotels Case Study). In the recent years the Hilton has became more economically strong through the acquisition of various chains of hotels. In order to add more to its revenues the company gives part of its business units/hotels as franchisees. The Hilton London hotel’s location is suitable for both business and leisure as it is positioned in a very posh market of the city. The Hilton hotel commands a very strong economical position vis-à-vis its rivals (Hilton Hotels Case Study). The types of services provided by the Hilton hotels depend on the particular needs of its customers. It provides hospitality to both leisure as well as business seeking guests. The company adds more value its social responsibilities by contributing lots of revenue to the Hilton Community Foundation that services the community in need. All the hotels in the Hilton Corporation are equipped with the latest technological instruments and facilities. They are aimed at enhancing the lifestyle of its guest. The system is monitored by a dedicated team and hence all the data relating to customer information is used to know more about its customers. The Hilton hotel corporation faces a threat of new entry to the market. As much as there are already big players in the hospitality industry and competition is intense if a new entrant is powerful enough it may cause problems to the existing players as their market share can be decreased. Since this is a world of technology a new entrant may bring in new technologies in order to impress the customers. The Hilton hotel has millions of guests as a result if something ever goes wrong then the customer can easily switch to a different hotel. Therefore, consumer taste and preferences is the biggest power the customer community has. On the other hand rivalry between the hospitality companies poses a big threat of increase in the rate of supplied materials and services. Hence the power of suppliers is a key issue for the company and can hinder the performance if something goes wrong. Hilton is highly competitive; in order to gain a competitive advantage, it did various mergers and acquisitions further more Hilton provides exceptional services to business guest and other class of travelers in order to maintain that competitive edge. The biggest threat that affects Hilton is the products and services of different industries which can satisfy the need of customers in a similar manner. For example, Hilton charges its customers for the cab services they use for sightseeing and travelling this can be affected if the customer opts for public transport and as a result substitutes may affect its performance. The location of it hotels is the biggest strength of Hilton. Every hotel is easily accessible via public transport and near famous tourist places in order to ensure a constant flow of guests. The quality of services provided and the huge investment budget reserved for marketing its product is another big strength of the company. On the other hand the interior designing of the hotel is its biggest weakness as it needs to be improved apart from that huge amount of debts can pose financial problems to the company. The hotel has a big opportunity to offer a wide range of executive services to its customers in order to retain them. The hotel is planning to acquire a cruise line so as to attract guest who prefer traveling by sea. Moreover there is a huge scope of opportunity in the gaming industry. Whereas the biggest threat of the company is over expansion and mixing gaming with hospitality. Consequently the 9/11 attacks gave a massive to the hospitality industry and as a result a similar event poses a threat to the company. Marketing Objectives analysis of Hilton Corporation The main motto of the Hilton hotels is “to fill the earth with light and warmth of hospitality”. Its key marketing objective is to build a sustainable market leadership worldwide with the thriving hospitality industry and strong future forecasts. The company has achieved a strong presence in the international hospitality community through its mission to become the supreme hospitality corporation and the first preference of its guests. The Hilton has become successful in consistently delivering high quality services to its customers and thus it thrives hard to achieve its objectives. Strategy Definition of Hilton Corporation The strategy employed by Hilton involves a market segmentation process that involves dividing a large segment of market or an industry into smaller segments having the same needs or similar characteristics. The product range of the hotels vary from the facilities and amenities, online services, rewards and benefits and the products that come under the global Hilton brand. The price of one night per person varies depending on the location of the hotel. For instance, the price per person in the Hilton hotel in London is more expensive as compared to that in South Africa. For promotional purposes, Hilton hotel spends a considerable amount of money on online promotions and advertisements and also support annual social events. Another strategy is market targeting that involves dividing huge market into smaller segments and concentrating on a particular segment. This process entails focusing all the marketing efforts and resources to a particular segment of the market. In addition to the two strategies is the market positioning whereby this is a process in which the company creates an impression in the minds of its customers. Market positioning also involves the regular monitoring of products and services and their performances in the market. For this reason Hilton regularly monitors feedback from its customers. Therefore if a change is suggested by a customer it is readily made. Tactics Plan of Hilton Hotel Corporation For the tactic plan the Hilton hotel has implemented the ansoff matrix that concentrates on the company’s current situation, its products and markets. Different ways to grow via the existing product and markets are considered through this tactic as well as new products and markets. Hilton hotels are able to penetrate the different markets through giving wide range of products and services at an affordable price based on this combination. It also has a big opportunity to further penetrate into the existing market and reach newer markets and also develop their products for new and existing markets. This is as a result of increased popularity and has been a choice of millions of customers. As much as Hilton is a clear market leader in terms of hospitability it experiences tough competition from the likes of Starwood, Marriot and Sheraton. As a result the main marketing plan is to differentiate itself among its competitors in terms of giving exceptional customer services. Building an effective rand image and increasing the communication with the customers form part of its marketing strategies (Pickton, and Amanda, 2005). The guest loyalty program and the Hilton membership privileges are two important programs aimed at attracting customers. These programs were designed to give rewards to loyal customers for using the hotel services over and over. Action Plan of Hilton Hotel The key channels of marketing are either direct, advertisements and/or internet. The Hilton hotel action plan, involves a marketing mix. The marketing mix involves: Place: customer’s preference depends on the location of the hotel. Any customer would prefer locations near to public transport or near the local tourist place. The key to success of a hotel is its location. Product: the company gives exceptional services and facilities to its guests. In additional to that they also give various rewards and benefits to the members of the hotel. These services are implemented with an aim to attract and retain customers. The product range of Hilton includes bars, conference facilities, honeymoon services and many more amenities and rooms are provided. Price: the hotel has very competitive prices as compared to its competitors and it gives attractive facilities. It acts as a cost differentiator in the hospitality industry. The rates of rooms include all the applicable taxes and are on a per night basis. They vary according to location. Promotion: a considerable amount of money is spent on promotion and online marketing. The company offers lots of sponsorship to a number of community programs with an aim of reaching more customers since public relations is very important. Control plans of Hilton Hotel Corporation After making the marketing plan it is advisable to have a one year estimated budget for marketing (Juin, 2000). The budget will help the company have an insight on the marketing expenses for one year and also assist to monitor its performance. Estimated Marketing Budget in £ Advertising in Television 1,200,000 Radio Promotions, Marketing Companies, sponsorships 3,000,000 Website Maintenance 50,000 Other Promotions 160,000 Community programs 240,000 Field Marketing 0 Business Guests seminars 100,000 Marketing staff Training 50,000 Other Miscellaneous Expenses 200,000 Total Marketing Expenses 5,050,000 Table 1 source Euromonitor International: Global Company Profile. Hilton Hotels Corp - Travel and Tourism – World, 2009 Evaluation, Assumption and plans The two marketing programs initiated by the hotel were very successful as they received positive feedback. On the other hand other hospitality companies have started to follow the similar programs and practices and as a result Hilton has to device another innovative and sustainable plan to attract customers. A further assumption can be made that there can be new entrants and the current competitors can decrease their process in order to gain competitive advantage. Hilton needs a backup plan so that if the designed plan fails resource and time will not be wasted trying to start from scratch. One back up plan can be designed by investing into new ventures the like gaming industry so as to merge both industries and used collectively to attract customers. Conclusion From the marketing plan it is noted that Hilton has a lot of potential in becoming the leading hospitality company in the world. Marketing is by far the biggest medium available for any organization to reach customers and convey the brand value to them and hence if used in a proper way, it can help in achieving various milestones. This art of marketing can also help Hilton hotels in all possible means to also increase its market share. Work cited Ashworth, Gregory J, and Henk Voogd. Selling the city: marketing approaches in public sector urban planning. Belhaven Press, 1990. Baron, Roger, and Jack Sissors. Advertising media planning. McGraw-Hill, 2010. Juin, Subhasli С. "Marketing planning & strategy." (2000). Euromonitor International: Global Company Profile. Hilton Hotels Corp - Travel and Tourism – World, 2009 "Hilton Hotels Case Study One Situation Analysis" StudyMode.com. 05 2006. 05 2006 . Hiebing, Roman G. and Scott W. Cooper. The Successful Marketing Plan: Brief Edition, NTC Business Books: Lincolnwood, Ill, 1990. Hopkins, D. S. The Short­Term Marketing Plan, The Conference Board: New York, N.Y., 1972 Lehmann, Donald S. and Russell S. Winer. Analysis for Marketing Planning. Irwin McGraw- Hill: Boston, MA., 1997 Pickton, David, and Amanda Broderick. "Integrated marketing communications." 2005. Stern, Louis W., and Adel I, El-Ansary. Marketing Channels. New Jersey: Prentice Hall, 2008. Print. Read More