Gaming and Entertainment Plan for Hilton Hotels - Example

Gaming and Entertainment Plan for Hilton Hotels Name Institution Date Table of Contents Table of Contents 2 Executive Summary 2 General Company Background 3 Mission Statement, Vision Statement and/or corporate values 5 PESTEL Analysis 5 Current Hilton Competitive Analysis 6 Current Market Analysis 7 Current Marketing Mix 8 SWOT analysis 9 Future Marketing Strategy (Objectives/Activities) 11 Marketing Strategies 12 Executive Summary Hilton Hotels operates as a hotel chain. As a result, is required to keep up with the hospitality changes in the industry. The hotels’ response was to shift into the provision or packaging entertainment and gaming to develop into destination resorts so as to attract more customers.   However, Hilton faces various significant challenges in its efforts to refocus all its hotels across the world to effectively strike a balance between the gaming marketing service and its hotel branches.  In order to remain competitive within the gaming and hotel industries, Hilton should control and develop both the gaming and hotel branches so as to ensure that it has long-term viability, entertainment and hotel service stability for more profits. In order to develop this strategic gaming and entertainment marketing plan, more attention has been given on the marketing objectives, the Hilton’s current marketing situation analysis to determine future needs particularly in gaming and entertainment field, target markets, strategies to achieve the intended hotel, gaming and entertainment marketing objectives. Suggestive strategies are made on how Hilton can ensure long-term serving and survive in the gambling and entertainment competitive environment. General Company Background Hilton Hotels Corporation has presence in more than 50 different countries and owns, manages as well as franchises hotels, casino-hotels as well as operates inns which sell furnishings, hospitality equipment and supplies to other hotels and motels. Major gaming operations are in the U.S., Australia, Turkey and Canada. In its attempt to become increasingly aggressive within the business environment, Hilton Hotels made a decision to change its strategic marketing direction so as to venture into the gaming and entertainment industry. Through this strategy not only the new opportunities discovered but also more elements of both risks and competition. After two main takeover challenges, Hilton Hotels has made a decision to change its business services so as to become more aggressive within the hospitality business operation. The outcome of the decision was to shift heavily into the gambling and entertainment in all its hotels across the globe. This change in the hotels’ strategic direction is a symbol of significant shift within the Hilton's business focus as well as marketing objectives (Huckestein, 1999). Hilton hotel’s strategic plan is focused on packaging gaming with the objective of providing entertainment services to create destination resorts in all its hotels. However, the management of Hilton hotels has analyzed that the diverse nature of games as well as entertainment, does not allow the successful service combination of the two since each provide different consumer needs by implementing different management strategies. In this gaming and entertainment strategic marketing plan, the marketing objectives for the project are identified, analysis of the current market situation is made, and target markets are identified with suggestive strategies to meet market or customer needs. Mission Statement, Vision Statement and/or corporate values The vision statement for Hilton Hotels Corporation is to be the leading choice of travellers across world, developing the rich heritage as well as strength of their brands. This is through delivering more innovative products and services, expanding their family of brands, consistently delighting their customers, continuously improve their performance in their balance scorecard and invest in team members. The core value of Hilton Hotels Corporation includes increasing shareholder values, creating and maintaining a culture of pride as well as strengthening the loyalty of their constituents. Hospitality is based on individuals and at Hilton, where they pride themselves on their unique service culture. The company’s wide philosophy promises to treat each guest with a positive service attitude at any given point of contact. All people in the hotels including hotel managers, receptionists, porters and waiters play a very important role in promoting a memorable guest experience. The mission for Hilton is to provide business as well as leisure travellers a choice of excellent hospitality services that account for good value for profits, while ensuring that a good return to the owners as well as shareholders, inspirations to employees is maintained. PESTEL Analysis POLITICAL – the existing political system greatly supports Hilton and its industry. Although numerous requirements are put in place with respect to the hotel, gambling as well as entertaining industries yet company confirms to all them. ECONOMIC – the present global economy is also supportive of the activities of hotel, hospitality, gambling as well as entertainments industries. However, Hilton endeavors to cover more markets in turn to protect themselves from the economic declines within the highly correlated European markets. SOCIAL – The social system also supports hotel and entertainment industry since the business and leisure travel is considered as the norm. TECHNICAL – With the techno-how, Hilton utilizes the support from the outside construction expatriate companies to develop some new facilities. Hilton, therefore, utilizes sophisticated software so as to keep track of their customers and technology. The company can even book rooms in the real time mode as well as receive payment through credit cards while online. LEGAL- The legal system also promotes and protects the hotel, gaming and entertainment services since they are contribute to the economic development. Current Hilton Competitive Analysis The main competitors of Hilton and the hotel or entertainment industry at large include Mirage, MGM, Mandalay, and Luxor which have currently covered the same geographic routes as well as regions that are already covered by Hilton. This indicates that larger institutions to a larger extent neglect the smaller towns and separate interests of customers. Some of the critical success factors that Hilton a hospitality and entertainment company must pursue to become successful include adhering to the various financial security as well as safety requirements as a way of keeping the license for both gambling and hotel services. In order for Hilton to provide its hotels corporation a greater competitive advantage, it has managed its hotel properties internationally within the Egyptian territories, Belgium, Hong Kong, Indonesia, Thailand, and England as well as in Mexico. Furthermore, Hilton is well known for its franchised hotel properties across the globe, particularly in Puerto Rico, Peru, Dominican Republic, Mexico, Canada, Ecuador, and Venezuela. Hilton Hotels are largely competing within the hospitality industry regardless of the increased negative impact of global terrorist attacks, war as well as other political upheavals that threatens its operation. However, for the company to better serve its customers in demographic way, Hilton properties are reflected in full-service with limited service hotels provided in airport, urban, and suburban as well as resort locations. The company also provides unique design and furnishing services including the services of purchasing and distributing furniture, beverage, furnishings, food, equipment, and other operating supplies. Such services are made available to Hilton as well as its subsidiaries, which utilizes the computerized wide-reaching reservation system. It has been reported that Hilton expects to increase from 130 to 150 hotels in addition to 16,000 to 20,000 room extension to the hotel corporation. This growth is to be achieved for fruition and through franchise and management conformity (Starkov, 2001). Current Market Analysis The target market for Hilton hotels include the daily business traveler, leisure travelers, convention business segments as well as families who are on their vocation. The demographics of the hotels and lifestyles change causing major impacts on travelers in various countries. Majority of the travelers come with different priorities such as visiting theme parks, shopping, dining and beaches. It has been argued that the age of travelers, marital status as well as the number of children can cause great impacts on vocation destinations of consumers. Hilton has recently sponsored two programs known as the GRAMMY Awards and Hilton Journey’s a tie within the music world.  In regard to their ad campaign “Travel Should Take You Places,” Hilton hotels’ Journey reflects the lives or achievements of the six young musicians for their quest across the globe.  On this Hilton Journeys, a person can keep track of any emerging artists, listen to their stories as well as connect with them on any emotional level. Additionally, Hilton Journeys established a new feature referred to as Hilton On Time.  This service enables guests to pre-order various items such as food and towels so that their items can be right available the moment they check in. Current Marketing Mix In order for Hilton to succeed in its gaming and entertainment market, it had to make proper assessment of its segmentation and positioning strategies. In the attempt to research on how to enhance the organization’s marketing so as to attract more customers, the marketing management first analyzed the current situation of Hilton Hotels. Detailed analysis has also been made on what worked best for the hotels in its past performance so as to employ the past practices into the contemporary market. Suggestions have also been made on having a continuous assessment of how effective the competitors are by analyzing their gaming plans, spending habits of their customers, marketing structure as well as their cost value in relation to guest surveys (Evans & Stonehouse, 2003). Based on the research carried out on its market needs, Hilton has discovered opportunities for increased market need to combine gaming industry with its normal hotel industry services. The contribution of gaming and entertainment services to the hotel business earnings has been analyzed and the results indicates an increased need for its consumers to offered with gaming and the hotel services combined in a single business or service. The market for hotel industry has indicated a long trend of incorporated gaming as well as entertainment into the hotel services. Therefore, Hilton has decided to expand its facilities such as casinos and shows in all its hotel chains across the world. However, the management of Hilton hotels needs to be vigilant when applying its strategies to provide complementary services (Huckestein, 1999). While the cost of entertainment is considerably high for hotels, it is more cost-effective in attracting visitors to the gaming tables or machines. The market trends also indicate that hotels are developing into a one-stop-shop, an implication that hotels are not only providing guests with rooms to stay, but also the gaming, lounges, entertainment, comedy clubs and shopping services needed by consumers. Such a market trend reflects the development of hotels into various destination resorts, and thus the need for developing a gaming and entertainment strategic marketing plan for all the Hilton hotels (Walkup, 2000). SWOT analysis Businesses that expand in their services, take note of their consumers needs and wants. This implies that such businesses value their consumers by fostering an environment that identifies them as special entities over a long period of time. Therefore, it was important for Hilton to develop its own SWOT analysis as a basis for improving on its weaknesses while emphasizing on the assets to develop a gaming and entertainment strategic marketing plan. Strengths -Hilton hotel is well developed organization, considered as an industry leader within the hotel and hospitality industry. -The hotel has solid integration features like investments in the online reservations and travel enterprises. -Hilton hotel is more diversified across the hospitality industry with its hotels at the mid-priced classes as reflected within their product mix. Weaknesses -Hilton is vulnerable to the strikes and crackdown of its workers. -The hotel seem to be too narrowly focused which makes it vulnerable to the downtowns of global economy as well as world-wide catastrophes such as major terrorist strikes and bird-flue that limits the global travel. Opportunities -Take advantage of the emerging markets such as the business class as well as mid-priced markets. -Availability of personal trailers -Chances of wedding planning and hosting in their hotels Threats -Terrorist attacks as major blow to all hotel industry. -The provision of credit and side effects of the gaming service may prove to be slow but sure losing way profits. -Hilton hotel may not be careful enough to avoid overextending all its efforts on combining entertainment and gaming. From the above SWOT analysis, it can be noted that Hilton is already in the operation of hotel business, and thus will not experience much problems related to accommodation within the new gambling and hotel locations. Further, Hilton is a well-recognized organization with a strong brand name, indicating the hotels will incur unneeded expenditures connected with less recognized brands and the need to create theme parks or hotels. Opportunities for Hilton shows that its hotels will need to cooperate with other major gambling companies to get updates on the leading and popular slot machines as well as card games. Therefore, Hilton will be required to penetrate third world countries such as Russia, Ukraine, and South America as well as African countries in order to develop its corporate hotel chain. This will enable Hilton to establish more locations for entertainment and gambling services (Walkup, 2000). Future Marketing Strategy (Objectives/Activities) The marketing issues to be addressed in the gaming and entertainment strategic plan are to achieve more consumers from the rest of other gambling casinos. The focus is also on how to make all the Hilton hotels resort destinations to obtain more operating earnings. The marketing objective to expand the gaming and entertainment idea is to ensure that the Hilton hotel chain become more developed within the entertainment as well as resort business in the hospitality industry. Through investing large amounts of resources into creating their own gaming divisions in all its hotel chains, the Hilton has a vision to become a more recognized destination resort that will fully encompass all the needs of its guests to retain them in the confines of its resorts. However, a consideration has been given on the Hilton hotels’ will obtain its market share from the gaming and entertainment revenues. It has been suggested that level of gambling and side attraction will act as the basis for determining the organization’s profit margins. Furthermore, the hotel chain will endeavor to increase its entire occupancy rate through a continuous development of the industry benchmarks (Harrison & Enz, 2004). Marketing Strategies After a careful analysis of national as well as regional industry trends, the Hilton chain of hotels will be in a position to take the full advantage of existing and emerging opportunities to expand and develop its gaming and entertainment as well as hotel services. However, the marketing management will continuously identify threats that may cause adverse effects to its services. There will be continued focus on the gaming, international expansion as well as use of all the media as modes to promote all its products to the potential customers. This is to maintain its growth and competitive nature within the hotel as well as hospitality industry. One of the major recommended strategies for the Hilton hotels is to put more emphasis on the value of family within all its national and regional hotels. This will include both the gaming and casino locations. A number of the Hilton hotels have small areas that are specifically designed for arcade games. Furthermore, some hotels already have elaborate arcades, areas for games as well as child-care centers to suit those people who intend to travel with their children. This indicates that it will be important for the Hilton hotels to be quipped with facilities that will attract more parents traveling with their children to enjoy staying at their properties. Given the fact that more demand and vocation time is considered as one of the best moments that families find themselves able to spend their quality time together, it will be vital for the Hilton hotels to capitalize on such a market segment (Starkov, 2001). However, the new market segmentation strategy for Hilton to promote gaming and entertainment services in all its hotels was done based on geographic and demographic characteristics. This indicates that local preferences, nature as well as geographic location are the main focuses. Hilton will provide its services to a particular group, for instance, elderly people who goes to retire at specific place in an identified location, will be allocated to recreational hotels and the gambling residences for the elderly people. On the other hand, demographic strategy will focus on personal characteristics including gender, affiliations, income and age. This suggests that young kids that will not have a chance to frequently use the Hilton gambling facilities compared to their adults, Hilton will ensure that demographic strategy implemented by focusing on delivering the Hilton gambling and entertainment message via the mass media as a way to target such groups. However, Hilton must take into consideration that diversified nature of games and entertainment can be an automatic guarantee for the successful combination of the two. This is simply because each provides a different service to different customer needs, and thus calls for specific management strategies (Starkov, 2001). Hilton will be required to develop more strategies that can motivate customers to participate in the activities of gambling and entertainment so that they can feel not wasting their money. Therefore, Hilton should apply consistent innovation in its day to day business operations by introducing large and new entertainment packages in all its hotels. Hilton should focus more on the implementation of strategies that encourage gaming events in the hotels and drawing many customers within the gaming legal areas as well as concentrating on the hotel quality, positioning and their uniqueness. This will enable Hilton to avoid separating its energies and strengths. Since Hilton is well known for its long time existence, it should ensure all the hospitality facilities in all its hotels are up to the required or updated standards. This is to ensure that all its amenities serve even the new or emerging hotel chains. Therefore, Hilton must apply strategies that enable all its hotels across the globe to survive or deal with its competition challenges. Hilton will be required to continuously stand out from competition challenges, engage in joint marketing initiatives as well as leverage technology through the use of eDistribution channels so as to cut costs (Walkup, 2000). Reference list Evans, N.C, D & Stonehouse, G., (2003). Strategic Management for Travel and Tourism. Oxford. Butterworth-Heinemann Harrison, J.S & Enz, C.A., (2004). Hospitality Strategic Management: Concepts and Cases. Wiley, Chichester. Huckestein, D., (1999). Hilton Hotels. Cornell Hotel & Restaurant Administration. Quarterly, 28-38. Starkov, M., (2001). The Best Survival Strategy in Hospitality Is the Proactive Strategy. Retrieved November 23, 2011 from, Walkup, C., (2000). Cost-Cutting Hotel Chains Check in With New Brands, Value Formats. 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