Mastering Metrics 2201 - TASK 1 (1)

by:

Mastering CIM LEVEL 6 DIPLOMA IN PROFESSIONAL

Metrics MARKETING

2201 - Task 1

TABLE OF CONTENTS INTRODUCTION...........................................................................................................................1 TASK 1 REPORT............................................................................................................................1 1(a)...............................................................................................................................................1 Organisation Name & Type of Organisation...............................................................................1 Range of products and services provided....................................................................................1 Customer Base.............................................................................................................................2 Size of Organisation in terms of turnover and number of employees.........................................2 Main Competitors........................................................................................................................2 1(b)...............................................................................................................................................3 Range of different metrics to identify products and services with context to Hilton Hotel........3 1(c)...............................................................................................................................................4 Improvement in satisfaction of different segments of customers in context to Hilton Hotel......4 REFERENCES................................................................................................................................7

1

INTRODUCTION Marketing unit and operations are controlled and implemented through various departments in an organisation. Marketing introduces organizational products and services to customers. Since marketing deals with the production and presentation of the products and services of the company, it is essential that the operations of marketing a highly controlled in order to generate large sales and profits (Ladhari, 2009). Large organizations, in general, spend a large portion of the revenue on marketing related activities. This report presents the marketing environment and marketing strategy options of Hilton Hotel, which forms part of their business operations. To get the deep insight into the way through which success of organisational products and services can be measured, Hilton Hotel of the UK has been analyzed. The cited hospitality organisation of the UK works with the mission to cater the need and demands of customer through various measures and marketing strategies.

TASK 1 REPORT 1(a) Organisation Name & Type of Organisation One of the most famous and well known organisations of the hospitality industry type of the UK is the Hilton Hotel. The company hold about 2,800 holdings across the globe. This is with respect to self-owned as well as franchises. Being an American multinational hospitality firm, the firm’s growth rate is showing tremendous growth. This global chain is owned by Blackstone Group which belongs to a secret equity firm. The cited brand has about 3,897 hotels with about 642,000 rooms in 91 nations of the world. Range of products and services provided As part of its strategic plans and objectives, Hilton Hotel aims at opening 50 Room at Stratford City. This new hotel aims at catering to leisure and business travellers, and to provide maximum comfort during a visitor’s stay by offering a range of services such as Room Service, Lounge, Parking Facility, Multi-Lingual Staff, Safety Deposit Box, Baggage Storage, Concierge Desk, Barber Shop, Gift Shop, Foreign Currency Exchange, Laundry/Valet Service, Fitness Room, Spa, Shoe Shine Stand, Sauna and Steam Room (Lo, 2012). For the same, the enterprise 1

always encourages launching of new product or services in order to strengthen its effective customer base through the attainment of highest level of customer satisfaction. The focus thus has been laid on finding the innovative and attractive marketing ways through which customer’s attention could be gained. The rationale behind selecting the Hilton hotel is that it is the hospitality industry where customer’s satisfaction is all based upon the standard form of services and effective management practices of human resource management (Guffey and Loewy., 2010). Thence, the combination of what HRM is managed and marketing activities are coordinated has been reflected through the present research work. Understanding the company’s products and services through customer satisfaction is not a new concept to today’s era. However, executive different tools to measure the success outcome is the another significant consideration. Customer Base Customer service policy is one of the business tools which are used by the Hilton Hotel to determine the satisfaction level of consumers after providing them products and services. It further assists company in identifying the potential needs of customers and retaining them in long run (Lo, 2012). In this report various aspects of customer service measures will be studied in the context of Hilton hotel. Furthermore, learning will be shown regarding principles of marketing by studying Hilton’s products and services and its analysis on measuring their customer’s satisfaction Size of Organisation in terms of turnover and number of employees Hilton Hotel falls under the large sized organisation in the hospitality industry of the UK. The workings and structure falls under the high responsibility with major records to maintain transparency and higher output targets. As per statistics, there are about 152,000 employees working at their company-owned locations with regards to data as per 2015 (Guffey and Loewy., 2010). Main Competitors Being the well-known and established hotel firm of the UK, there are many competitors which are still struggling for competing with the Hilton. This is majorly on the basis of setting base of good management practices of gaining customer satisfaction, powerful base of products and services, marketing practices of attracting consumers etc. The major competitors of the Hilton Hotel are Marriott Hotel, Radisson, Starwood Hotels & Resorts Worldwide, Choice

2

Hotels International (CHH), Hyatt Corporation, the France-based ACCOR Group, and Intercontinental Hotels. 1(b) Range of different metrics to identify products and services with context to Hilton Hotel Generally, hospitality organizations use different types of key metrics which contribute effectively to analyze the consumer satisfaction at the workplace. For this, Hilton hotel considers different aspects like Net promoter score matrix, financial metrics, measurement of loyalty, customer spending, repeat purchasing intension as well as number of complaints received for identifying satisfaction level of customers. Management of the hotel considered these factors to make better matrix for providing good satisfaction level which are discussed above. In addition, this technique helps in taking better decision to improve hospitality services and products for service users (Grönroos, 2007). Generally, net promoter scores helps in analyzing present service of Hilton hotel by showing very bad, bad, average, good, very good, outstanding points. Financial metrics and customer spending play important role for organization to find out previous purchasing of consumers from hotel. Measurement of loyalty shows incoming frequency of consumers to visit organization in the specific time interval. Repeat purchasing buying intension represents better service level of Hotel as compared with others in the market. Collection of complaints reveals failure and inappropriate facilities of the hotel which provides information to improve specific areas. This can help the management of Hilton to design better services for customers in an appropriate manner. In addition to this, diagram of Net promoter key matrix is given below in the paragraph.

Figure 1 Net promoter key matrix (Source: Lo, 2012)

3

From the above diagram, it can be seen that starting points like 0 to 1, 2 and 3 points are considered as ‘bad’ and ‘very bad’ responses. It means that the management of Hilton needs very high improvements in its products and services which can aid to provide better satisfaction to their customers. Further, 4 to 5 and 6 to 7 points show that the response of hotel is measured as ‘fair’ and ‘good’ service levels respectively. Higher efforts in this regard can help the management of Hilton to give good efforts to reach the next level. 8 to 9 and 10 points are considered as the highest level of facilities which satisfies almost all the standards of service that the hotel can provide in an appropriate manner (Lo, 2012). 1(c) Evaluation of metrics that can be considered in context to Hilton Hotel In general, the management of the hotel can develop its specific matrix by considering needs and requirements of the customers and analysing market trends of the hospitality industry. For this, the hotel can associate many factors such as customer spending, repeat purchasing frequency, net promoter score, consumer complaints and their loyalty to make key matrix. This technique can help Hilton to achieve better response from consumers. Further, it can aid in increasing its hospitality business in national and international market. It can assist in enhancing brand image and value of Hilton in the minds of service users. It will provide better information to the hotel to find out the expectation of consumers in a proper and effective manner. This also helps management of Hilton to compete in the market by using different kind of strategies and techniques (Fletcher, 2012). Use of matrix to improve consumer satisfaction In order to implement the suggested matrix, the hotel management has to adopt better strategies. For this, the hotel management has to recruit and train employees in order to achieve good outcomes because this step can help the management to make effective strategies and take decisions as per the given circumstances. After that, the hotel has to manage technical and financial resources to continue the process. It will aid them in finding out appropriate information regarding consumers which can help provide better satisfaction ratings for the hotel. For example, with help of these things, employees and managers can analyse customer spending by using hotel management software (Carraher and Parnell, 2008). Moreover, it can also give information frequency of same customers in specific time intervals which can aid to find out issues and complexities of them regarding hospitality services of Hilton. Further, the hotel can find out complaints of different consumers by contacting through emails as well as mobiles which can aid to evaluate its present level of hospitality services and 4

products. Employees of the hotel can make use of questionnaires and net promoter score card for understanding the satisfaction level of consumers. With the help of this method, management of the hotel can be aware about its present service levels, opinions and suggestion in appropriate manner. On this basis, the hotel can remove its weakness and issues of service users which can contribute effectively to provide hospitality facilities to them (Guffey and Loewy, 2010). By implementing this key matrix, management of Hilton has improved its services levels in its branches. These practices play important role to improve its service levels by considering consumers suggestions and new strategies for different product and services like food and beverages, living and other facilities. They also help the hotel to expand its hospitality business in international and national markets.

5

REFERENCES Carraher and Parnell., 2008. Customer Service during Peak (in Season) and Non-Peak (off Season) Times: A Multi-Country (Austria, Switzerland, UK and USA) Examination of Entrepreneurial Tourist Focused Core Personnel. International Journal of Entrepreneurship. 12. pp. 39. Fletcher., 2012. Clinical epidemiology: the essentials. Lippincott Williams and Wilkins. Grönroos., 2007. Service management and marketing: customer management in service competition. John Wiley and Sons. Guffey and Loewy., 2010. Business communication: Process and product. Cengage Learning. Helkkula and Kelleher., 2010. Circularity of customer service experience and customer perceived value. Journal of Customer Behaviour. 9(1). pp. 37-53. Hulley and et.al., 2013. Designing clinical research. Lippincott Williams and Wilkins. Ladhari, R., 2009. Service quality, emotional satisfaction, and behavioural intentions: A study in the hotel industry. Managing Service Quality: An International Journal. 19(3). pp.308331. Lo, B., 2012. Resolving ethical dilemmas: a guide for clinicians. Lippincott Williams and Wilkins.

6