Hilton Worldwide Holdings Inc. is an American multinational hospitality company. The franchise is managing the broad portfolio of hotels and resorts. It was founded by Conrad Hilton in 1919. The head office is located in Tysons Corner, Virginia. The brand includes a wide portfolio that includes approximately 5,100 properties. Hilton has 14 brands and serving customers through their premium services (Globally motivated individually focused. 2017).
Hilton is managing the organizational value of courtesy and handling the organization in order to match the industry. The existing changes in the hotel services have a consistent impact on its value. Hilton is a synonym of Luxury and perfection. The perfect, personified services provided by the hotel have helped in gaining effective recognition. The luxurious Hotel chain offers better quality products and services.
Distribution theory system
A distribution channel strategy is helpful in developing strategy important to sell customers in a particular geographical area or a market segment. There are various distribution strategies that allow an organization to attain objectives. Each and every channel allow in managing customers requirement and allowing developmental needs. This mechanism is important for managing the sales and developing relationship with the customers. It is evident from the point of view of gaining effective market needs and developing effectiveness (Sales and Marketing. 2017).
Hilton believes in developing a key concept that focus on an effective distribution channel. The distribution strategy adopted by Hilton is Vertical. The brand has a strategy to reach customers through an effective market strategy. Distribution channel therefore plays a crucial role in reaching customers and developing effective brand value (Hayes & Ninemeier, 2009). E-marketing plays an important role in disbursing effective results and allowing customers to understand the value of the brand. In an extremely completive market, it is necessary for Hilton to manage the distribution strategy to adopt the changes in an effective way. The distribution channel is a way to manage revenue mechanism and allows customers to gain revenue. The system allow in gaining customer base in order to attain capacity. It is therefore important for channelizing effectiveness in order to attain organizational needs. The distribution channel therefore allows in managing the distribution channel in a hotel. The distribution channel allows effective contribution in order to attain additional customer base without any direct sales and marketing costs (Holcomb, Upchurch & Okemos, 2007). This has however added effectiveness in order to manage competent resources. There are certain options that allow in managing the direct marketing campaigns to provide a higher standard of service to the customers. Hilton has attained largest customer base by technical competency and team development. They are using an effective way to manage changes in a better way by arranging organizational needs. It is highly evident for managing deals with the customers in an effective way. The purpose is to manage the distribution channels (Jin-zhao & Jing, 2009)
Hilton is able to manage the distribution channel through sales and marketing Team. The brand is giving preference on driving revenue of the hotel. The various customer segments, market dynamics through new technology and media platforms will surely improve the market campaign. The marketing strategy allow in creating brand value and awareness. The purpose of the marketing campaign is to generate a different brand position in the market. Hilton primarily focuses on diverse customer segments by strengthening its internal strategy. It therefore supports the customer needs in order to generate revenue. The centralized system believes in maximizing the revenue by adding strategic value. The electronic distribution channel is an important to for Hilton. This is important for them portals to deal with the guests (Law, et al 2015). Hilton is the centralized worldwide sales and marketing efforts to optimize the efficiency. The Online booking has become one of the significant parts of the distribution strategy. The online website helps in organizing the distribution channels. It is important from the point of view of developing effectiveness. This is important from the point of view of global support. The distribution theory used by Hilton is complementary with the marketing strategies. The hotel therefore allow in unifying the brand name with the brand strategy. The integrated marketing communication through search engine optimization and marketing, social media, viral marketing, email programs and distributed content is helping in promoting the effectiveness. There business Intelligence unit is efficiently using digital marketing efficiencies to accelerate E-business (Linton, 2017).
With a vast team the brand is improving the sales strategy by maximizing Hilton’s Ability to grow the top line revenue. The internal process is focused on accelerating the sales process. It has a dedicated business and Leisure travel sales force operating efficiently in order to procure maximum benefits. It is necessary to manage the individual needs by developing the booking mechanism and catering the needs of the people. It is rated as one of the most preferred brand. It is they are able to manage relationship with the customers in order to promote strategic sales. This is important from the point of view of gaining effectiveness and improving the revenue for the long term growth (Mok, Sparks & Kadampully, 2013).
Hilton has appropriately implemented the pricing strategy into the business channel in order to mark appropriateness. They have efficiently mapped price at the different distribution channel. This includes a fair profit for every individual attached with the distribution channel. Pricing conflicts are obvious in an organization in order to implement strategy. Hilton has a common practice to make sure efficient pricing at each step. The appropriate service channel and partners allow in procuring a high amount of revenue. Hilton has expanded its brand portfolio, sales efforts by promoting internal brands. The competitive strategy allow in gaining competency by improving the appropriate goals (Nyheim & Connolly, 2011).
Efficacy of existing Marketing Plan in terms of distribution channel
The existing marketing plan is to manage distribution channel in order to maintain brand value and to respond accordingly. Hilton is largely focused on targeting distinct guests through the exquisite services. The brand has symmetrically prearranged distribution channels by improving overall marketing tools. The aim is to maximize the potential revenue from the existing customers and to gain maximum benefit by distinctive approach (Walker & Miller, 2009). It has a purpose of delivering distinct services as per customers. They have a distinct quality driven model enabling brand distinct experience on a long run. This is important from the point of view of developing distinct results and serving individual requirements. Hilton is using a coordinated marketing strategy in order to give benefit to the customers. The purpose is to organize an effective brand placement strategy in order to attain significant brand positioning.
The corporate marketing team is important from the point of view of gaining effectiveness. The marketing channel allow in managing the distribution function. The marketing manager utilizes the strategic market need in order to improvise business activities. It is important for accelerating the distribution channel.
Technolo gical applications and Innovations
Technology is important for gaining competent results. This is one of an important tool that is used to manage the distribution channel. Hilton is using high ended technology to accelerate effectiveness. In this way, it is possible to manage the organizational growth (Paryani, et al 2010). They are providing employees with highly skilled training that allow in managing effectiveness. Hilton is expanding the business portfolio in order to arrange distinguished growth. In this way, it is possible for the brand to gain competent results. It is necessary to gain effective market place in order to attain competitive advantage. This is necessary from the point of view of gaining effectiveness in the existing competitive era. Search engine optimization and marketing, social media, viral marketing, email programs and distributed content are used as a technological process to initiate the distribution channel (O’Neill & Davis, 2011).
Channel and Conflict and Issues
One of the conflicting issues that are witnessed is related to market strategy of the brand while retaining corporate guests. There is a necessity to follow an effective structure by managing contacts. The role of the distribution channel is attaining effectiveness. This is to arrange effectiveness in the entire hospitality industry. There is a necessity to keep a track on the market needs and to focus on the growing travel industry (Pizam & Shani, 2009). There is a need to imbibe facility like travel trade, information and technology industry and the automotive industry into the hospitality industry. Apart from the worldwide companies should focus on the local organizations. In this way, it is possible for managing sustainable goals and arranging appropriate results. It will enable the company to attain economy of scale. The independent marketing program will allow the business organization to adopt the drastic changes taking place in the overall hotel industry. The purpose is to strengthen the business effectiveness and to add the necessary goals (Tranter, 2009).
Channel SWOT Analysis
- Offering a wide range of guest services and luxury
- The sales and marketing teams are efficient enough •
- The distribution channel is concrete
- Strategies should be communicated efficiently
- The inter-departmental communication should be improved
- Major expansion opportunities.
- Improvement in corporate business strategy
- Strengthening of distribution channels
- Huge competition
- Improvement of the distribution channel effectively.
Finding and Recommendations
In order to gain effectiveness, this is important to manage the growth by increasing better opportunities. There are amplifying opportunities in Australian market in terms of managing the distribution channel. Hilton should develop the distribution channel that will help in managing the business environment. It is recommended to shape the policies keeping in mind the requirements by keeping in mind the customers. Hilton serves different types of guest. By developing the services in an effective way, it is possible to strive and develop customized packages for the customers. Moreover, this will enable the brand in gaining an unforgettable experience for the guest. Corporate services should be added into the local and international hotel chain as this will allow in achieving a competitive advantage. The focus should be on providing technology based solution to the customers to gain effectiveness. Hilton has to improve the overall structure by channelizing distribution theory. This is the most effective way to gain growth and channelizing better functioning.
To conclude, the report includes distribution theory system of Hilton. The group is known for providing a mixture of corporate and personal experience to the guest. Most importantly the prominent services are providing people with an option to gain effective goals in a strategic way. The distribution theory therefore helps in developing effectiveness in order to achieve results. Recommendations are given at the end provide important features that can be added in order to increase the overall effectiveness of distribution channel. This is an important aspect in order to gain efficiency. The hospitality industry is gaining efficiency by developing better opportunities in terms of more prevalent services. These services are interestingly helping in growth and development in the sector.
Distribution Channels. (2017). (Image). Retrieved from : https://www.marketingmo.com/strategic-planning/how-to-develop-your-distribution-channels/ (Accessed on: 5 December 2017)
Globally motivated. Individually focused. (2017).(ONLINE). Retrieved from: https://hiltonworldwide.com/development/performance-advantage/hilton-worldwide-sales/ (Accessed on: 5 December 2017)
Hayes, D.K. and Ninemeier, J.D., (2009). Human resources management in the hospitality industry. John Wiley & Sons.
Holcomb, J.L., Upchurch, R.S. and Okumus, F., (2007). Corporate social responsibility: what are top hotel companies reporting?. International journal of contemporary hospitality management, 19(6), pp.461-475.
Jin-zhao, W. and Jing, W.A.N.G., (2009). Issues, challenges, and trends, that facing hospitality industry. Management Science and Engineering, 3(4), p.53.
Law, R., Leung, R., Lo, A., Leung, D. and Fong, L.H.N., (2015). Distribution channel in hospitality and tourism: Revisiting disintermediation from the perspectives of hotels and travel agencies. International Journal of Contemporary Hospitality Management, 27(3), pp.431-452.
Linton,I. (2017). (Online). Retrieved from: https://smallbusiness.chron.com/develop-distribution-channel-strategy-56913.html (Accessed on: 5 December 2017)
Mok, C., Sparks, B. and Kadampully, J., (2013). Service quality management in hospitality, tourism, and leisure. Routledge.
Nyheim, P. and Connolly, D., (2011). Technology strategies for the hospitality industry. Prentice Hall Press.
O’Neill, J.W. and Davis, K., (2011). Work stress and well-being in the hotel industry. International journal of hospitality management, 30(2), pp.385-390.
Paryani, K., Masoudi, A. and Cudney, E.A., (2010). QFD application in the hospitality industry: A hotel case study. The Quality Management Journal, 17(1), p.7.
Pizam, A. and Shani, A., (2009). The nature of the hospitality industry: present and future managers' perspectives. Anatolia, 20(1), pp.134-150.
Sales and Marketing. (2017).(ONLINE). Retrieved from: https://www.managementservices.hilton.com/en/support-services/sales-and-marketing/ (Accessed on: 5 December 2017)
Tranter, K.A., (2009). An introduction to revenue management for the hospitality industry: Principles and practices for the real world. Pearson Education India.
Walker, J.R. and Miller, J.E., (2009). Supervision in the hospitality industry: Leading human resources. John Wiley and Sons.