Competitive Frame of Reference
Target Market
The primary emphasis of Hilton’s global segmentation strategy is on local preferences and location. Hilton employs the brand diversification approach to carefully classify the market in order to satisfy the differentiation requirements of various client groups throughout the globe (Zeng, 2021). By using the brand extension concept of “Main Brand + series sub-brand” based on market segmentation, diverse hotel brands are used to give varying levels of service to fulfill varying consumer demands, specializing in the target market (Zeng, 2021). For example, the target market for Hilton consists of middle-aged and senior professionals with high salaries and belonging to the elite social class.
Hilton Hotels & Resorts primarily targets customers who seek a luxury lifestyle. As a result, the corporation charges premium fees for items and services deemed to be of appropriate quality (Landman, 2020). The essence of Hilton’s psychographic segmentation is to target ambitious people who want to demonstrate their perceived high status and accomplishment by staying in five-star hotel rooms at premium rates (Landman, 2020). The perceived or actual advantages supplied by Hilton to prospective and current clients include a feeling of accomplishment, a high social position, and luxury.
Competitor
Similar to other hotel corporations, Hilton has faced rising competition from Airbnb in recent years. However, according to the company’s officials, Hilton is in an altogether separate category and provides services that Airbnb and other similar firms cannot (Johnson, 2017). Former Hilton CMO Geraldine Calpin told Business Insider that the company operates in the hospitality business rather than simply apartment renting (Johnson, 2017). The company is dedicated to delivering extraordinary experiences to customers and differentiating its services from competitors.
Positioning
The company’s corporate identity or positioning expresses its goal of illuminating the world with the light and warmth of hospitality by offering extraordinary experiences at every hotel, for every guest, at all times. The core values of the company include hospitality, integrity, leadership, teamwork, and ownership. The hotel’s staff is constantly enthusiastic about providing great hotel and resort experiences to its visitors. In short, these values could be explained in the following manner. They are truthful about the services they give and the amenities they provide, which means they constantly follow justified integrity (Alameri, et al., 2021). The company is representing the market-leading hotel and resort brand (Alameri, et al., 2021). Hilton defines how its members collaborate to accomplish its aims and objectives (Alameri, et al., 2021). The activities created by the firm and the decisions made by the company demonstrate Hilton’s ownership.
Hilton’s major consumer brand, Hilton Hotels & Resorts, and the corporate brand have almost equal market positions. Its strategic area is now designated as the world’s most trusted host and hospitality industry leader (Hilton, n.d.). Prior to now, the brand strategy centered on the brand’s fashionable and forward-thinking personality so that the brand’s progressive image could be utilized to enhance the perception of the complete Hilton portfolio.
Customer-Based Brand Equity
Customer-based brand Equity allows one to identify the progression and differentiation of the brand on the market. The model presupposes that a brand creates value for the client: a customer chooses to approach service from a well-known and respected brand (Visser et al., 2019). As the customer’s relationship with the brand grows, the brand’s value improves (Visser et al., 2019). The brand’s communications in this model seek to reach the top of the CBBE, which is a brand resonance.
The Hilton hotel chain’s brand identity promises a premium, upmarket hotel experience. The brand meaning represents a sophisticated brand image that enhances or reflects clients’ social images and corporate competency as a successful corporation on the market (Shan, 2017). In this regard, Hilton is a model corporation since the brand’s role in reflecting extra values, such as corporate competence in accommodating consumers throughout the globe and an upmarket business and user image, is clear (Shan, 2017). Customers respond positively to the brand because they are confident that the firm will deliver high-quality accommodations and services regardless of location (Shan, 2017). However, the rise of Airbnb and other businesses has caused a vortex in Brand Resonance. It is difficult to discern a high level of client loyalty. The research by Shan (2017) suggests that clients in the hotel sector are becoming less brand-focused. This may impede Hilton’s ability to develop a robust, loyal client base and may be considered the company’s issue.
Marketing Communication Focus
The corporation customizes its advertising to display a strong return on investment. The firm’s advertisements on Facebook indicate that the clickthrough rates for personality-matched advertising were at least twice as high as the industry standard for the travel sector (LaMontagne, 2017). Consequently, it is evident that the company has a strong marketing presence on online media platforms and is well-coveted by its customers.
Recently, Hilton announced the launch of its first New Memories worldwide marketing campaign since the outbreak of the COVID-19 virus in the United States. The program, based on consumer insights, reflects the customers’ desire to reconnect with the people and places they love (Hilton, 2020). The ad follows a recent poll revealing that vacation memories are among the happiest in consumers’ lives, implying that the majority of Americans, 188 million, would claim to be suffering from a travel memory shortage (Hilton, 2020). The results also showed that customers were optimistic and ready to travel again soon, which is reflected in the new ad and in the new incentives and packages from Hilton.
Reference List
Alameri, M., Alshamsi, F., Alsaedi, S., Alkaabi, A., Alamri, R., Alshamsi, M. and Nobanee, H. (2021) ‘Financial Analysis of Hilton Holdings’. SSRN Electronic Journal, Web.
Johnson, K. (2017) ‘A Hilton exec explains how technology keeps the hotel chain relevant after nearly 100 years’. Business Insider. Web.
Hilton. Web.
Hilton. (2020) ‘Hilton launches New Memories Marketing Campaign.’ Stories From Hilton. Web.
IMDb. (2021) ‘100 most popular celebrities in the world.’ IMDb. Web.
LaMontagne, L. (2017) ‘Personality-matched ads: How hilton worldwide effectively personalized its marketing messages’. MarketingExperiments. Web.
Landman, P. (2020) ‘Target market definition/meaning’. Xotels. Web.
Visser, M., Sikkenga, B and Berry, M. (2019) Digital Marketing Fundamentals: From Strategy to ROI. London: Routledge
Shan, H. (2017) A consumer-based brand equity model for the luxury and upscale hotel sector. PhD Thesis. Edith Cowan University. Web.
Zeng, L. (2021) ‘Analysis of Hilton Worldwide Hotel Group’s Transnational Operation Strategy’. Academic Journal of Business & Management, 3(11), Web.