Market Analysis of Hampton by Hilton Hotel (Research Paper Sample)

Marketing analysis of Hampton by Hilton Hotel in Jewelry Quarter Birmingham
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Marketing analysis of Hampton by Hilton Hotel in Jewelry Quarter Birmingham
Background
Being a hotel operating within the mid-price segment, the Hampton Hotel encounters a significant level of competition for guests with other key players in the hotel industry. Business strengths, including huge popularity and staff diversification have been instrumental in ensuring the hotel handles this competition, as diversification promotes new cultures and practices (Hastings, 2007). Despite this, the hotel faces weaknesses such as inability to reach a wider customer population resulting to the fact that the hotel has not fully exploited market opportunities provided by modern technological developments (Lusch, Vargo and Tanniru, 2010). Modern internet technology especially plays a key role in accessing wider market for products (Armstrong, 2011). A promising fact however, is that the hotel enjoys opportunities such as continued expansion in the utilization of its brand name, meaning, the hotel is better placed in expanding its customer base (Cho and Hyoung, 2006). Also, the availability of social media provides access to wider customer range as it connects a large number of people globally (Nicholls, 2010).
The market segmentation adopted by the Hampton hotel is based on understanding customer behavior, as well as the quality of service the customers expect. This segmentation approach is classified as a price-quality segmentation, with the prime target being the mid-price segment of customers. In essence, the mid-price segment hugely comprises of individuals and families within the middle class who are capable of affording the middle-tier brand of services and goods.
The Hampton hotel has been outstanding in providing customer-based services to much appreciation of its guests. This has been attributed to a strong leadership structure, which puts significant emphasis on provision of exemplary services. The hotel design, consisting of a finish level categorized from mid-to-upper tier, with improved guest rooms design, improved lobbies, expanded areas of fitness and services such as free access to high-speed internet complement its recognition as a quality performer in the hospitality sector/
Strategy and Tactics in Marketing
Among the common aspects of marketing are strategies and tactics. A strategy is the plan for attaining particular goals, such as increase in market shares or sales, as well as creation of a particular business image (Katz, 2010). Tactics on the other hand are used in the creation of a brand or image. Based on this, strategic marketing is inclusive of selling services and goods in a manner that facilitates achievement of set goals. Within the Hampton hotel, the set goals include increased sales, market shares, revenue, market segmentation, as well as creation of new brand position within the market (Faber, Brittany and Xiaoli, 2012). This strategic marketing however is criticized for not being conceptual and failing to specify the exact rates of growth expected out of the practices in the organization (Andreasen, 2002). Tactical marketing, on the other hand includes the action taken upon the establishment of the goal, together with the particular strategies to be used in achieving the goals (Desai, 2009).
Image and Positioning
An image for an organization is meant to enhance and augment the positioning concept communication. In cases where the concept is straightforward, there is no need of the image (Lefebvre, 2011). However, the nature of the changing world today is characterized by visual-oriented practices of websites, video news, digital billboards and many other practices. The right image serves to promote the objectives and interested of the business, whereas a tainted image limits the business fortunes and competitiveness (Chang and Zixue, 2005). A concept serves a major purpose in determining the idea’s position in influencing the targeted audience. This means the concept developed must be emotional, functional, and effectively precise to the organizational objective.
Positioning is an important part towards the launch of a product and the organization as a whole in the market as it influences and controls the market perception of the organization. The image of the organization in the minds of the target customers is created by the positioning of the products offered by the organization (Frey, Carl and Gary, 2000). Ensuring above average profitability is solely dependent on the sustainability of competitive advantage of the company (Levine, 2010). Competitive advantage is demonstrated through differentiation and through low cost. With a sufficient focus on the two basic approaches to competitive advantage, the activities of the company may enable it achieve the three generic strategies, which are focus, cost leadership, and differentiation (MacInnis, 2004). A competitive advantage over rivals is evident if the company manages to sustain profits surpassing its industry’s average. Sustainability of competitive advantage is a key factor in Hampton.
The hotel has been keen in enhancing both its cost and differentiation advantages, which are the major factors for sustainable competitive advantage (Stephen and Frederick, 2005). Among such operations has been the hotel’s ability to deliver similar benefits to those of its competitors at a relatively low cost (Joseph and Aimee, 2008). In essence, competitive advantage facilitates creation of superior value by the firm for the customers as well as superior profits for the company (Neuendorf, 2002).
Among the most important aspects of the hotel is the ability to bring down costs and enhance efficiency within the hotel industry (Defourny and Nyssens, 2010) thus maintaining its positional advantage (Madill, Brouard and Hebb, 2010). Another factor that provided the hotel with an advantage over its competitors is the competent management. Majority of businesses are bound to fail because of incompetence among its leadership (Madill, Brouard and Hebb, 2010). In Hampton hotel, however, the invention and designing of the efficient human resource and employee satisfaction has been important in promoting higher levels of operation and profitability of the hotel (Richards and Catharine, 2002).
Owing to the comprehensive examination of the strengths and weaknesses of the competitors, the hotel realized that its competitors targeted higher customer segments, hence provided services at higher and less affordable prices on their services (Steward and Bruce 2010). In response to this, the organization sought to target varying consumer segments, hence providing services at affordable prices.
Hampton hotel has the ability to identify avenues of profitability and understand the costs of internal activities which determine its performance in the marketplace (Potter and Karyn, 2007). This means that Hampton hotel can have a differentiation benefit and a relative low cost principle that would see its success irrespective of the challenges facing it (Nelson and Hye-Jin, 2007). Differentiation advantage makes consumers perceive that the hotel provides unique products that meet their needs. Upon achieving this, the hotel can exploit the advantage by increasing the price of its services until it offsets improvement in the consumer benefits or price its products below that of its competitors to build a large market share, a strategy (Stevenson and Linda, 2011). The low costs benefit would allow the company to maintain its productivity through maintaining current performance while gaining market share and matching the price of the competing services to increase its performance and profitability (Andreasen and Kotler, 2003).
Hampton develops and maintains an inbound logistic that is well-structured, which is efficient in managing all its operations. For instance, the company has managed to maintain an upward trend in the number of customers using its services, and this has facilitated the expansion of the company operations (Kerr and Don,). In addition to this, Hampton outsources manufacturing services and this enables the business to concentrate on other important activities. Hampton has a well defined target market, which reaches people of all classes and age. They have also put in place strategies aimed at limiting customer service as a way of cutting on operation cost and thus resulting in low prices for their services. In this manner, the company is able to maintain competitive prices for its services (Donovan, 2011).
Build relationships
Building relationship by the hotel would require the hotel management to integrate the various promotion mix elements in order to meet the requirements for information for all customers on target (Crano and Michael, 2002). This implies that the promotion mix is meant for the satisfaction of both regular and prospective buyers. Certain elements are thus meant for the customers who have no knowledge of the product, while the rest are for customers that are informed of the product have a higher likelihood of purchasing it (Ziegler, 2010).
Among the major elements the hotel should embrace are high levels of advertisement through the numerous platforms that include the internet, radio, television, brochures, billboards and catalogues (Bailey, 2006). Secondly, promotions and exhibitions would persuade the public into adopting the hotels products and services and publicizing news that contain the hotel’s policies, which is cost effective and informative, should be adopted (Rodgers and Esther, 2000).
Lastly, sales promotions stimulate the market, consumer demand, and improve product availability and when coupled with direct marketing, customers who lack access to advertising channels ...