A marketing plan outlining a product opportunity of the Hilton Worldwide Hotel

1. A marketing plan outlining a
product opportunity for the Hilton
Worldwide hotel
XIN XIE
B00631869
HTM 538
Word count: 2730

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Contents
1. Executive Summary………………………………………………………………….2
2. Introduction………………………………………………………………………..…..2
3. Marketing Audit …………………………………………………………………….…3
3.1. The Market………………………………………………………………........3
3.2. Market positioning…………………………………………………...…….…4
3.3. Macro Environment (PESTLE analysis)……………………………………6
3.4. Micro Environment (Porter’s 5 forces)……………………………………...7
3.5. Internal Resources……………………………………………………………9
3.6. SWOT Analysis………………………………………………………………11
3.7. Assumptions………………………………………………………………….12
4. Objectives …………………………………………………………………………….12
5. Strategy ……………………………………………………………………………….13
5.1. Market Segmentation………………………………………………………..13
5.2. Target Markets……………………………………………………………….14
5.3. Positioning Strategy…………………………………………………………15
5.4. Product and Pricing Strategy……………………………………………….16
5.5. The Marketing Mix…………………………………………………………...17
6. Resources and Controls …………………………………………………………….18
6.1. Resources Requirements…………………………………………………..18
6.2. Measures……………………………………………………………………..19
6.3. Key milestones ………………………………………………………………20
7. Conclusion ……………………………………………………………………………20
8. Reference list…………………………………………………………………………21
9. Appendices …………………………………………………………………………..23

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1. Executive Summary
Hilton Worldwide is a leading hotel organisation in the hospitality sector with
4,661 hotels and 764,748 rooms spread across 102 countries (Hilton
Worldwide, 2016).
This report aims to propose a marketing plan for the Hilton worldwide Hotel,
Belfast by increasing the afternoon tea menu within food and beverage area.
Hilton Worldwide Hotel, Belfast is a 4* hotel located in Belfast City Centre,
and is part of an international hotel chain.
Key objectives are:
 Introduce a new product in early February 2017.
 Identify new markets for the product and service system.
Core strategies are:
 Analyse the market segmentation, target market and positioning in the
market.
 Making a product work by using marketing mix tool to help.
 Producing a marketing plan for a product to be implemented by Hilton
Worldwide Belfast.
2. Introduction
Hilton Hotels began in 1919 from Texas as Mobley hotel, then went public as
Hilton Corporation in 1946 with 15 of its properties spread across 11 states. By
2012, it owned over 1,400 Hotels and 172,000 rooms in the world.
Hilton is one of the fastest growing hospitality organisations in the world (HA,
2016).

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“We will be the preeminent global hospitality company — the first choice of
guests, Team Members and owners alike” (Hilton Worldwide, 2015).
The mission of this organisation is to “make the company more hospitable by
giving warm experiences to travelers and guests, and by providing meaningful
opportunities to team members for personal growth” (HA, 2016).
Hilton Hotels today is a head hospitality hotel chain with its differentiated globally
recognised brands in different countries.See Appendix for Futuer information
about brand names.
3. MarketAudit
The marketing audit defined by McDonald and Wilson (2011, p. 43) as “a
systematic appraisal of all the external and internal factors that have affected
a company’s commercial performance over a defined period.”
3.1 The Market
The hotel industry has become one of the most important sectors affecting
the United Kingdom’s economy nowadays. According to PWC UK hotels
forecasts report (2016, p. 4) that within the hotels industry, room occupancy
is the key performance indicator (KPI), it has been increasing by 1.2% up to
77% (peak) of the occupancy in 2016, which includes Scotland, England,
Wales, and Northern Ireland. Data collections and provinces forecast can be
found in Appendix 1, which includes: the current occupancy, Revenue per
available room (RevPAR), Average daily rate (ADR) and Demand still
outpacing supply growth.
Within the huge number of travelers who came to Northern Ireland in 2016,
the total revenue has been increasing by 6.1% in 2016 and the hotel sector
was the majority industry leading the economic growth (NISRA, 2016). More

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information canbe found in Appendix 2. According to Hospitality review NI
(2016), there are 14 new hotel project plans to build and will be finished in
2018. Further information about hotel plans for Belfast can be viewed in
Appendix 3.
As an International hotel chain, Hilton Worldwide Belfast is a 4* hotel located
in the heart of Belfast City Centre, and has already become a well-developed
hotel in Belfast. In order to keep the trends growing further, Hilton Belfast
must continue focusing on its luxury and related accommodation, high
standard quality customer service and their strong customer relationship by
having Hilton HHonors, which is available at all Hilton hotels in the world
(Hilton HHonors, 2016). Please view Appendix 4 for more information about
HH Honors.
3.2 Market Positioning
It is necessary to use the BCG (Boston Consulting Group) Matrix Model to
establish the market positioning within the hotel industry. Hilton Worldwide
hotels are using it on all its companies, including the Hilton Worldwide Hotel
Belfast. The Boston matrix classifies “a firm’s products according to their
cash usage and their cash generation using market growth and relative
market share to categories them in the form of a box matrix” (McDonald and
Wilson 2011, p. 172).

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Figure 1: BCG Matrix Model: Hilton Worldwide International
Figure 2: BCG Matrix model: Hilton Worldwide, Belfast
Accommodation
Meeting & events
Food & beverage
Gym & spa

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“Hospitality Industry is slow moving and an emerging industry of the world in
which the companies require time to have their market share” (Ashan et al,
2014, p. 7)
Figure 1 and 2 illustrate the BCG Matrix model for Hilton Worldwide hotels
and Hilton Worldwide Belfast. It can be seen that Hilton Worldwide has a
brand recognition market and wonderful market share in the hospitality
industry (Ashan et al, 2014, p. 7). According to figure 2, Hilton Belfast is
above the general standard of Hilton Worldwide chain in the BCG matrix
excluding F&B and gym & spa. Therefore, the food & beverage department
(Cash Cow) can be improved further in the hotel.
Additional information on Hilton Worldwide’s BCG Matrix can be found in
Appendix 5.
3.3 Macro Environment (PESTLE analysis)
Dransfield et al. (2004, p. 446) defined PESTLE analysis as a tool of
“identifying the key structural changes in the business environment that are
relevant to a specific business”; Thus, Hilton Worldwide hotels are relying on
PESTLE to manage the macro environment. Further information can be
found in Appendix 6, the chart below shows the PESTLE analysis for Hilton
Worldwide, Belfast.
P
Political Factors:
 Brexit: EU Relationships (BBC, 2016)
 Tourism taxation & Brexit: Autumn Statement (Big Hospitality, 2016)
 Visitors number increasing: due to British pound’s drop after Brexit vote
(Financial Times, 2016)

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E
Economical Factors:
 'Staycation' boost to UK economy: millions of families shun foreign
holidays (The Telegraph, 2016)
 UK Economy grew fast after Brexit: What has happened so far? (BBC,
2016)
S
Socio-cultural Factors:
 Growth of gluten free market (The Guardian, 2015)
 “Free from food” market trend (Mintel, 2016)
T
Technological Factors:
 Smartphones user increase (SmartInsights, 2015)
 Hotels went hi-tech (The Guardian, 2016)
L
Legal Factors:
 Health and safety laws Hilton Worldwide (Hilton Worldwide employee
handbook, 2014)
 Employment Laws (Hilton Worldwide, 2016)
E
Environmental Factors:
 Reducing waste from hotels: helps protect the environment (Hospitality
Risk Solutions, 2015)
 Preserving environment: Hilton Worldwide goes environmental friendly
(Hilton Worldwide, 2015)
3.4 Micro Environment (Porter’s 5 forces)
Micro environment defined by Kotler et al. (2014, p. 64) as “consists of
factors close to the company that affect its ability to serve its customers, the
company itself, marketing channel firms, customer markets, and a broad

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range of publics.” Thus, Porter’s Five Forces model has been used widely in
the hotel industry to analyse competitiveness of the current market and
customer market.
Figure 3: Porter’s Five Competitive Forces Model (Porter, 1980)
1.Threat of new entrants: High
 30 new hotel project plans to build up in Belfast from 2016-2018
(Hospitality Review NI, 2016)
 Bullitt hotel by Accor group has already finished in 2016 (Hospitality
Review NI, 2016)
2.Threat of Substitutes: High
 Lots of heaper hotels and Airbnb around Belfast city centre.
 Europa hotel Belfast also provide similar service, facilities and
similar products.
3.Bargaining power of suppliers: High
 Hilton Hotels chain: world largest hospitality chain (Hilton
Competitive
Rivalry
Threat of
new
entrants
Threat of
Substitutes
Bargaining
power of
suppliers
Bargaining
power of
customers

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Worldwide, 2016)
 High quality F&B and customer service has been offered.
4. Bargaining power of customers: High
 Visitor attractions around Northern Ireland has been required by the
international travelers (especially for the increasing number of
Chinese market).
3.5Internal Resources
Figure 4 shows the chart of McKinsey’s 7s Framework elements. According to
McKinsey & Company (2016), the 7-S Framework is a tool to “understand the
complexity of organisations.” The analysis of McKinsey’s 7s framework shows that
Hilton is well positioned to offer a new high quality experience, such as the one
being put forward.
Figure 4: McKinsey 7s Framework
elements (McKinsey & Company,
2016)
Strategy Continuing to be the largest and fastest growing global hospitality
company (Hilton Employee Handbook, 2015)

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Structure Please see Appendix 7 for the chart of management structure of
Hilton Worldwide Belfast (Hilton Employee Handbook, 2016)
Systems  Fine dining (F&B)
 Table service (F&B)
 Function booking (Events & meetings)
 Check in & out service (Reception)
 Room service (F&B)
 Room maintenance (Housekeeping)
Style  Monthly department meeting
Staff  Well-staffed hotel
 Staff training before entry to work
 Health & safety test for each employee has been provided
by Hilton Belfast
 Employee will be given 30% off on every single hotel
under Hilton Hotels Chain (Hilton Hotels Employee
Handbook, 2016)
Skills  Teamwork
 High standard customer service
 Health & safety
 Communication
 Customer service skill
Shared
values
Highest and lowest comment of Hilton Belfast have been posted
weekly on employee cafeteria
3.6SWOT Analysis

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Kotler & Koller (2016, p. 71) defined SWOT Analysis as “the overall evaluation of
a company’s strengths, weaknesses, opportunities and threats; a way of
monitoring the external and internal market environment;”
Figure 5: SWOT Analysis of Hilton Worldwide (Ashan et al, 2014, p. 3).
Further information about Hilton Worldwide’s SWOT analysis can be found in
Appendix 8.
It is vital to analyse the market positioning, internal and external environmental
factors and the SWOT analysis of the Hilton Worldwide hotel, Belfast. ‘Sonoma
Afternoon Tea’ has been identified as a potential opportunity and can be
introduced into the hotel, especially since it has been provided by other Hilton
hotels (Double Tree, 2016). See Appendix 9 for future information about
afternoon tea by Hilton DoubleTree, London.

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3.7Assumptions:
1. There will be 14 more hotels building up around Belfast City Centre, so
that there will be more competitors coming by the end of 2018 (Belfast
Telegraph, 2015).
2. Increasing tourism to Belfast will affect hotel industry.
4. Objectives
Specific Introduce “Sonoma Afternoon Tea” to public by the end of February
2017.
Measurable Continue to provide high quality standard service in the industry.
Attainable Increase the afternoon tea bookings in Sonoma restaurant, Hilton
Belfast by 5% within first 6 Months.
Realistic Identify the new market for its service and product.
Targeted Achieve Ireland Year of Food and Drink in the end of 2018.
5. Strategy

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Strategy planning is “the process of developing and maintaining a strategic bit
between the organisation’s goals and capabilities and its changing marketing
opportunities” (Armstrong et al, 2013, p. 66). Thus, using Ansoff Matrix model
shows the new growth opportunities in the existing or new market in the
industry. Market penetration has been chosen to implement and illustrate the
“Sonoma Afternoon Tea” by using Ansoff Matrix.
Figure 8: Ansoff Matrix Model
Source from: Kotler et al. (2014, p.105)
5.1 Market Segmentation
Segmentation – “the process of dividing a market into distinct groups of
buyers with similar requirements” (Hollensen, 2010, p. 282), it is necessary
that the market be segmented.
Behavioral, psychographic and profile variables will be used to segment the
“Sonoma Afternoon Tea”:

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Behavioral  Purchase behaviour (pay for quality and
environment)
 Occasion special offers: Christmas, Mother’s day,
Valentines & St. Patrick’s
Psychographic  Lifestyle: domestic traveler’s dating
 Personality: An International Hotel chain
Profile  Geographic: located in the heart of Belfast City
Centre
 Demographic:
 Internal customers: mainly business people, young
couples & family groups
 External customers: International visitors, baby
boomers
5.2 Target Markets
Choosing the right target strategy is very important for the company to ensure the
materials and promotional tools can be implemented. Kotler et al. (2014, p. 109)
mentioned “a target market consists of a set of buyers who share common needs
or characteristics that the company decides to serve.”
The differentiated strategy has been chosen for use on “Sonoma Afternoon Tea”.
Hilton Worldwide Belfast is part of an international hotel chain, so that most
international travellers from US and Asian countries would pick Hilton Belfast to
stay while travelling to Belfast. As well as business travellers, local citizens also
enjoy staying and having meals in the Hilton Belfast.
5.3 Positioning Strategy

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Fitzwilliam Hotel
Positioning is defined by Armstrong et al. (2013, p. 165) as “Arranging for a
market offering to occupy a clear distinctive and desirable place relative to
competing products in the minds of target consumers.”
Sonoma Afternoon Tea-“Save for queuing and complaining about the weather,
Sonoma afternoon tea will lead you to enjoy the taste of your life.”
t
It will be positioned in comparison to the main competitors: Fitzwilliam, Europa
Hotel and The Merchant Hotel.
Thus, “Sonoma Afternoon Tea” will be providing a ‘quality position’ in the target
market. This will be achieved by offering high quality service and exquisite
afternoon tea. Please see Appendix 10 for the menu of “Sonoma Afternoon
Tea”.
High quality service
Low quality service
High priceLow price
Europa Hotel
The Merchant
Sonoma afternoon tea, Hilton

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5.4 Product and Pricing Strategy
The positioning strategy shows the competitors of “Sonoma Afternoon Tea” in
Belfast. In the pricng and product strategy, we will analyse the competitive
market within the industry. The analysis can be found in Appendix 11.
Pricing Strategies Matrix
Source: marketingteacher.com
The pricing position of “Sonoma Afternoon Tea” is market penetration. The
positioning is to provide a high quality product and service at an average price in
order to keep customer satisfaction.

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5.5. Marketing Mix
The Chart below presents McCarthy’s 4 Ps of marketing to introduce “Sonoma
Afternoon Tea” into the Hilton Worldwide Hotel, Belfast. See Appendix 12 for
addition details.
Product  High quality food serving in a graceful environment
 Unique selection in the existing market
Price  Valuable price to the target market
 Prices between £22-30, per person
Promotion  Prize on social media (Facebook, Instagram and Twitter)
 Special offers can be found in the hotel’s web page
Place  Located in the heart of Belfast City Centre, convenient for
people shopping in town.
 Convenient transportation (next to the central station)
People  Staff training before the first shift
 Staff are required to provide a high quality service for
customers.
 Being knowledgeable on all the menus
Process  Booking via: online agencies (Booking.com, C Trips,
Expedia, etc.); Telephone booking and walk-in hotel
booking
Physical
evidence
 Free Wi-Fi covered in whole hotel
 Free taxi phone at reception desk
 Elegant environment, comfortable stay

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6. Resources and Controls
6.1 Resource Requirements
The table below illustrates the actions required, responsible roles and
timeframe showing what, when and how tasks need to be implemented,
and by who, for the “Sonoma Afternoon Tea” in the Hilton Belfast.
Actions required Timeframe Responsibility
Menu food / Drink
selection
Early January Head Chef / F&B
Manager
Pricing design Mid January Head Chef / F&B
Manager / Marketing
Manager
Promotion / Sales Mid January F&B Manager /
Marketing Manager /
Accounting Manager
Final Menu End January Head Chef / F&B
Manager / Marketing
Manager
Staff Menu Training Early February Head Chef required to
train kitchen team
F&B Staff Menu Early February F&B Manager required

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Training to train F&B staff
6.2 Measures
The success of the “Sonoma Afternoon Tea” will be measured by:
Weekly 6 Months after 12 Months after
1. F&B Staff
meetings to collect
feedback of the
afternoon tea from
customers’ orders.
2. Kitchen team
meetings to find out
if there is any more
space to promote
the value, and taste
for the food.
1. Marketing team
need to collect
feedback from
customers who left
comments on online
media and
agencies.
2. Analyse the sale
promotions and the
ratings for the
afternoon tea.
1. Analyse the
weakness comments
for the “Sonoma
Afternoon Tea”.
2. Marketing team
needs to check the
promotion and sales
affect after the menu
has been on for a
year.
6.3 Key milestones
Milestones Date
 Menu proposal  Early January

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 Final afternoon tea menu
 Training & practice
 Sale / Promotion
 Online source available
 Open to public
 End January
 Early February
 Mid January
 Early February
 End February
7. Conclusion
All indicators suggest that the “Sonoma Afternoon Tea” could be a successful
offering by Hilton Worldwide, Belfast. Hilton Hotels is a premium brand, and
offering this premium service will fit in well with Hilton Belfast’s current portfolio.
The analysis of the environment, segment, and customer base shows that there
is a potential opportunity for such an offering to be profitable.
This product takes advantage of potential opportunities, namely increased
international customers, increased disposable income from local customers, and
a higher interest in healthier options. This coupled with Hilton’s strengths of
being a premium brand and high customer loyalty should satisfy current
customers and attract new customers interested to try the new offering.
The marketing plan has been outlined within this report using the SMART
framework. Also addressed in this report is specifically what product is being
offered, how to bring it to market, who are responsible for making it happen, and
a timeline to ensure it is brought to market in an orderly fashion. A measurement
metric, number of bookings, has also been put forward along with a goal and
deadline to assess successfulness of the product offering.
Word count: 2730

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