Marketing: 3Cs Hilton Case Study
Question one
Hilton hotel has specialized in selling a brand that has been strategically positioned to help challenge competitors, and in this case, have a competitive edge over Starwood. It is a case that can be presented to be continuous branding but, the experience and approach to branding are corporate scrutiny and decision making so that factors that play a role include franchising. One of the functional areas of the Hotel is that competitors may not be overcome through sales and service but allowing the brand to reposition itself, including the decision to design the HHonors program. These are options they have adopted to enable a loyalty to program manage their customer base.
Secondly, Hilton has realized that competition remains still especially among high-end customers. The realization has threatened their customer segmentation and, in particular, the Gold group. It is now shifting from staying as a product to selling loyalty programs to consumers as a reward to challenge market competitiveness. It is an example of a company xxxx describes being selling brands trough amounts of stays and frequencies to remain afloat in the market.
Question two
Hilton has to realize that the competitiveness of the market, customer segmentation, and consumer needs are changing at an unprecedented pace. The introduction of the benefits of frequency programs to companies and consumers help challenge these tides. For the company, it is a way of position the brand (Hilton) so that they avoid decisions on marketing that may not be impactful to the already tight economic situations as evidence in the image below. From exhibit one below, focusing on the frequency program means that the Hotel will create better value for its market compared to Starwood, who have over-relied on the pricing model.
Figure 1: market segmentation
Secondly, it will improve the asset turnover ratio that will, in return, ensure the maximization of production. Thirdly, the model will help the Hhonor program operate flexibly with the pricing model. Thirdly, it is the best way Hilton is going to gain more market share of its service for Gold and Silver as it predicts the needed levels of increased automation, increasing awareness of the service and creating promotional budgets in a sustainable manner (xxxxxx). For the customer, these programs means creating value and lowered pricing strategies. The customers are guaranteed market shares that meet their goals.
Question three
The decision to quantify the value of the HHonors program must focus on the financial figures. The company is currently working with a total of about 2.626 (1998) for Gold, Silver, and Blue members. And the whole is a reflection of a percentage of what the company commands as a loyal program. Secondly, there is a higher chance that the company will realize the retention model of the program. With a higher probability, Hilton is likely to have value additions, including increasing its revenues up to 20 percent based on the net income currently standing at $ 399. Another aspect of giving the company value regarding the HHonors program is the program costs of administration and member acquisition expenses, which show a balance between expenses and revenues.