Premium Essay

Hilton Hotels Case

In:

Submitted By brajesh
Words 1241
Pages 5
CRM – The Strategic Imperatives

G. SHAINESH
Professor of Marketing Indian Institute of Management Bangalore shaineshg@iimb.ernet.in Session Coverage

• Explosion of CRM in Marketing and IT • Enablers for the Growth of CRM • Criticality of Customer Relationships • Why Businesses Should Adopt CRM? • Implementing CRM
G. Shainesh. IIM Bangalore

2

Explosion of CRM in Marketing & IT
• Academics as well as practitioners • Conferences • Journals – Special Issues • Associations & Forums • Centers for CRM • IT Solutions – Siebel, E.piphany, Oracle, SAP, Sage CRM, Microsoft Dynamics, SugarCRM, Salesforce

G. Shainesh. IIM Bangalore

3

Enablers for the Growth of CRM
• Emergence of service economy, • Emergence of market economy, • Global orientation of businesses, and • Aging population of the economically advanced economies

G. Shainesh. IIM Bangalore

4

Enablers for the Growth of CRM ---1
• Emergence of service economy
– 60-80% of GDP of developed nations – ~56% in India – greater customer orientation in services due to simultaneity / inseparability – Services early adopters of CRM
• hotels, airlines, banking, financial services, telecom and retailing.

G. Shainesh. IIM Bangalore

5

Enablers for the Growth of CRM----2
• Emergence of market economy
– Deregulation of industries across the world in the 90s
• banking, telecommunications, broadcasting and airlines

– Market oriented economy necessitated customer focus and boosted the importance of CRM.

G. Shainesh. IIM Bangalore

6

Enablers for the Growth of CRM ---3
• Global orientation of businesses
– National markets to a borderless world / regional world – Emergence of trading blocks – WTO helped create a global orientation for firms – Firms need stronger customer orientation to tap opportunities in new markets while defending their home markets.

G. Shainesh. IIM

Similar Documents

Free Essay

Hilton Hotel, Case Study

...SUBJECT: Case Study: Hilton Hotels – Brand Differentiation Through Customer Relationship Management List of Key Issues or Problems in the Case * Hilton’s strategy to maintain its leadership position in the US as well as in the international lodging market * Hilton’s focus on profitability and Return on Investment * Personalized customer service and development of Customers Really Matter initiative (CRM) * Implementation of a new enterprise system OnQ and the associated costs * Maintaining competition with other hotel brands Discussion questions 1. What is Hilton’s core business? The case presented in the book describes the evolution of Hilton Hotels Corporation, nowadays known as Hilton Worldwide. It is a public company founded in 1919 by Conrad Hilton. Hilton is one of the leading hospitality companies comprised of over four thousand hotels in ninety-one countries. Hilton’s web site states the following: “Ten brands, more than 4,100 hotels, and more than 300,000 Team Members across corporate offices and owned, managed and franchised properties make us the world’s leading hospitality company.” Hilton’s core business is to provide outstanding customer care of their guests, ensure their one of a kind experience while staying at the hotel. The acquisition of Promus Hotel Corporation in the year of 2000 added additional 1700 hotels to Hilton Worldwide. The company also invests heavily in the new hotel development, franchising and affiliating with real...

Words: 880 - Pages: 4

Premium Essay

Hilton Hotels Case Study

...Hilton core business: Hilton Group of hotel is one of the renowned names in the lodging industry. With close to 3000 properties and 500,000 rooms in 78 countries, it is among the top most brands in the hospitability sector. It is a brand management company, catering to the needs of millions of travellers around the globe. With about several billion dollars of real estate invested in Hilton brand of hotels, it offers distinct products across a whole range of consumer segments. Being a brand management company, Hilton hotels own many properties and also franchises its brand name to the property owners who chooses to invest with them. While offering its brand, Hilton wishes to create a unique standardized experience for all the customers across the world. At the same time, Hilton offers property owners an immediate recognition, more footfalls, advertisements and other branding benefits so as to have the best guest experience associated with the Hilton Hotel Brand name. Hilton competitive advantage lays on both its size and diversification as it is present in almost all the segments of the industry. Unlike their competitors who are either big but less diversified or are diversified but lack presence in all segments, Hilton brands offer whole gamut of products in all segments. As per my analysis Hilton hotel is mix of both sales oriented and market oriented firm with the belief of putting customer needs first. Their Customer Really Matter initiative and the subsequent OnQ program...

Words: 1609 - Pages: 7

Free Essay

Hilton Hotels Business Case

...Hilton Hotels: Brand Differentiation through Customer Relationship Management Business Context * Founded by Conrad Hilton in 1919, began it’s operations with Mobley Hotel in Cisco, Texas * In 1946 went public as Hilton Hotel Corporation and had 15 properties in 11 states * The chain in 1964 spun off the International business into a separately traded company Hilton International that was sold * In 1964 divided the domestic lodging segment into: * Casinos * Vacation ownership * In 2000 acquired Promus Hotel Corporation, took Hilton’s close to 1700 properties marks. * In 2005 Hilton Hotels bought back Hilton International Co. * Hilton opened 1,000th hotel in North America since 2000 reaching a presence in 78 countries and over 100,000 employees. Key Business Drivers * Retain their excellent services improving Hilton experience * Aggressive growth strategy * Enhancing the value of its brands portfolio * Keep its leadership in the market Initiative Objectives/Benefits Objectives | Benefits | Introduce the Customers Really Matter promise | * Recognition * Personalization of the customer experience * Service recovery | Foster a closer relationship with best guests | * Improving customer loyalty | Improve the flexibility of the company | * Storing detailed information about customers * Use the SALT survey, key component of CRM | Initiative Challenges Challenges | Solutions | Make CRM part...

Words: 782 - Pages: 4

Premium Essay

Hilton Hotels Case Analysis

...purpose of this case analysis is to address the key marketing issue for the Hilton Hotels. The marketing strategies Hilton should pursue in the hotel and gaming markets will be discussed and recommendations will be made. In addition, the use and implementation of the SWOT analysis will be incorporated throughout the discussion. Information will be provided from the case study and the use of secondary resources for support of the marketing strategies recommended for the Hilton Hotels. Market Summary Hilton Hotels is one of the market leaders in the hotel and gaming industry in the United States. Hilton is a well-known and distinguished name in fine hotels across the United States and worldwide. In 1999, Hilton expanded aggressively by acquiring the Promus Hotel Corporation, Hampton Inn and Suites, Doubletree Hotels, Embassy Suites Hotels, and Homewood Suites. Hilton Hotels Corporation has grown to become the world's most recognized and most successful hotel company (Hilton Innovation, 2007). With the 2006 acquisition of Hilton International, Hilton Hotels Corporation became a global force with more than 2,800 hotels in more than 80 countries throughout the world (2007). Market Demographics The demographics for a diverse company such as Hilton offer a wide variety of customers. Hilton's target market includes the everyday business traveler, families on vacation, leisure travelers, and the convention business segment. After the events of September 11, the hotel industry...

Words: 287 - Pages: 2

Premium Essay

Hilton Hotel Case Analysis

...purpose of this case analysis is to address the key marketing issue for the Hilton Hotels. The marketing strategies Hilton should pursue in the hotel and gaming markets will be discussed and recommendations will be made. In addition, the use and implementation of the SWOT analysis will be incorporated throughout the discussion. Information will be provided from the case study and the use of secondary resources for support of the marketing strategies recommended for the Hilton Hotels. Market Summary Hilton Hotels is one of the market leaders in the hotel and gaming industry in the United States. Hilton is a well-known and distinguished name in fine hotels across the United States and worldwide. In 1999, Hilton expanded aggressively by acquiring the Promus Hotel Corporation, Hampton Inn and Suites, Doubletree Hotels, Embassy Suites Hotels, and Homewood Suites. Hilton Hotels Corporation has grown to become the world's most recognized and most successful hotel company (Hilton Innovation, 2007). With the 2006 acquisition of Hilton International, Hilton Hotels Corporation became a global force with more than 2,800 hotels in more than 80 countries throughout the world (2007). Market Demographics The demographics for a diverse company such as Hilton offer a wide variety of customers. Hilton's target market includes the everyday business traveler, families on vacation, leisure travelers, and the convention business segment. After the events of September 11, the hotel industry has...

Words: 305 - Pages: 2

Premium Essay

Research Paper

...Question ONE: 1.1 a) Productivity software is a category of application programs that helps users to produce things such as documents, databases, graphics, worksheets and presentations. b) Business software is any software or set up computer programs used by business users to perform various business functions. c) Communication software is used to provide remote process access to system and exchange files and messages, text, audio and or video formats between different computers and users. d) Multimedia software allows you to using a mixture of sound, picture, film and writing. System software has been developed to solve a particular problem for users to perform work on specific tasks or to provide entertainment. System software enables the Application software to interact with the computer and help the computer to manage its internal and external resources. Application software. After the Application software has been installed, you can start running the PC. Application software enables you to perform specific tasks – solve problems, perform work or entertain yourself. Difference between System software and Application software. System software manages and operates computer hardware and thereby providing a platform for Application software. Application software subsist of system software with the ability to employ certain computer functions as per user requirement. 1.2 Cloud storage is a concept of data storage where the digital data is stored in logical pools...

Words: 1054 - Pages: 5

Premium Essay

People

...Management5 Hilton UK6 The workforce6 Recommendations8 References9 Introduction An organization is a unit consisting of people structured in a particular manner and managed so that they could achieve one particular goal. It is basically a system of coordinated activities of a number of people together. Organizations have different structures that create positions and determine different members, positions, activities and relationships. How jobs need to be assigned, responsibilities and authority to be given to carry out different tasks. Organization is usually set up in different manners as to achieve their target. An organization structure helps it to excel and achieve those targets, if the structure is not correct it can play a major role in hindering the progress of the organization. It is structure of an organization that ensures that the organization will work smoothly as per the intentions. It is something that needs to be decided in the early development of organization as it is a way to maximize and enhance the efficiency and profitability of the organization. By defining a structure; the lines of authority in an organization are cleared hence helping to know who has what responsibilities. (Business dictionary, 2012) By taking under consideration Hilton Hotel UK, we can explain what their business management is all about. There are a few different types of organizational structures that we are going to highlight and find out which structure Hilton hotel follows: ...

Words: 3148 - Pages: 13

Premium Essay

Hilton Hotel

...CASE 2 Hilton Hotels Hilton Hotels Corporation owns, manages and/or franchises hotels, casino-hotels and inns; sells furnishings, equipment, and supplies to hotels, motels, and inns; and operates a computerized reservation system for the hotel industry. After two major takeover attempts in the early 1990s, Hilton Hotels decided that it had to change by becoming a more aggressive business operation. The result was the decision to move heavily into gambling. This change of strategic direction represented a significant shift in Hilton’s business focus and marketing objectives. Already the owner of four casinos in Nevada, the Los Angeles hotelier began pushing projects in New Orleans, Chicago, Egypt, Turkey, Uruguay, and Australia. While gaming accounted for about 34 percent of Hilton’s overall sales in the early 1990s, its four casinos contributed nearly two–thirds of Hilton’s operating earnings. Nevertheless, Hilton’s new emphasis on gambling carried a large element of risk. Competition for the gaming dollar is intense, and the degree of investment needed to be successful is high. Hilton has had to put more than $6 million into renovating the Las Vegas Hilton to keep up with such rivals as the Mirage and the Excalibur, and it has also renovated the Flamingo Hilton to keep pace with other new places. To lure high rollers away from other casinos, the Las Vegas Hilton has had to be more generous about extending credit, resulting in bad gaming debts and reductions in operating income...

Words: 1554 - Pages: 7

Premium Essay

Hilton

...Hilton HHonors World Wide: Loyalty Wars Loyalty programs have been around for a long time, tracing their origins back to the 1990’s. Modern day loyalty programs begin within the airlines, who found themselves struggling after the industry was deregulated in the early 1990’s. The 1990’s also brought about a time of change for the hotel industry: many brands began consolidating and combining resources. Hotel companies soon began combining operations, reservation systems, and marketing programs. Hilton hotel group was one hotel group that did just that. In the mid-1990’s the Hilton brand was own by two companies: The Hilton Hotel Company and Hilton International. In 1997, both companies came together to unify their marketing efforts, around this same time the companies created the HHonors Loyalty rewards program. The program was designed to unite the brand and unify its customer base in the US and abroad. The newly created program HHonors essentially worked for both of these companies and their franchisees, and was tasked with breaking even each year. Loyalty programs reward frequent guest by giving them points for each of their stays; points can then be redeemed for free nights, airline miles, and products from other participating vendors. Starwood Hotels has organized a rewards program that features no blackout dates, no capacity control, paperless rewards, and a higher reimbursement rate to the hotel for the nights given out using points. Marketing executives at Hilton are...

Words: 1213 - Pages: 5

Premium Essay

Hilton Honors Worldwide

...Hilton HHonors Worldwide: Loyalty Wars HOS 342 Service Marketing Hilton HHonors Worldwide: Loyalty Wars HOS 342 Service Marketing Anthony Petitte Anthony Petitte Introduction The following case concerns Hilton’s reward program for its guests, the Hilton HHonors, and the possible implications after the introduction of a different reward program introduced by Starwood Hotels and Resorts Worldwide Inc. Many companies in different industries use the loyalty reward program as a form of marketing tool to reward their loyal customers. By doing this, they are able to retain their customers and attract other potential customers. The more attractive the loyalty programs are, the more customers the companies get and retain. Customers are attracted based on how they earn points, and the benefits they get when they redeem the points. Many of the industries offering the loyalty programs have a standardized way of doing so because they are more independent and they have definite control. This is unlike the hotel industry, which has no defined control because of franchises and different management. There may be different people controlling the hotel chain despite the chain using the same brand. This makes it hard for the hotels to standardize their loyalty program. The Hilton reward program was effective in retaining and attracting customers, but the hotel chain faced different challenges, which increased its threat of losing its customers. Challenges facing the Hilton Brand The Hilton...

Words: 1340 - Pages: 6

Premium Essay

Hilton Hotel Csr and Three Myths

...consumers perceive any given company. However, some companies still try to get away with their social responsibilities, as those responsibilities are often associated with high costs for the companies. This essay will assess Hilton Hotels Corporations’ approach towards CSR, by reviewing and analyzing few different cases of unethical behavior from the above mentioned corporation. Moreover, such analysis will be done with regard to three different myths CSR. HILTON OVERVIEW Hilton was founded in 1919 and since then it has been a global leader in the hospitality industry. As of 2015, there are more then 4,300 Hilton branded hotels in 94 countries around six continents. Hilton directly owns some of these hotels, they manage some and some are franchised to other companies. It is run by CEO Christopher J. Nassetta. According to the Hilton’s official web site the mission of their strategic giving is to harness their passion and expertise to address the social, economic and sustainability issues that impact Hilton’s business and are important to the communities where we work and live. OVERVIEW OF THE CASE There are two cases that are enough to critically evaluate Hiltons CSR behavior. The first is as follows. In 2007, Blackstone group bought Hilton for $20 billion. According to the press the price...

Words: 1311 - Pages: 6

Premium Essay

Hilton Case Analysis

...Hilton core business: Hilton Group of hotel is one of the renowned names in the lodging industry. With close to 3000 properties and 500,000 rooms in 78 countries, it is among the top most brands in the hospitability sector. It is a brand management company, catering to the needs of millions of travellers around the globe. With about several billion dollars of real estate invested in Hilton brand of hotels, it offers distinct products across a whole range of consumer segments. Being a brand management company, Hilton hotels own many properties and also franchises its brand name to the property owners who chooses to invest with them. While offering its brand, Hilton wishes to create a unique standardized experience for all the customers across the world. At the same time, Hilton offers property owners an immediate recognition, more footfalls, advertisements and other branding benefits so as to have the best guest experience associated with the Hilton Hotel Brand name. Hilton competitive advantage lays on both its size and diversification as it is present in almost all the segments of the industry. Unlike their competitors who are either big but less diversified or are diversified but lack presence in all segments, Hilton brands offer whole gamut of products in all segments. As per my analysis Hilton hotel is mix of both sales oriented and market oriented firm with the belief of putting customer needs first. Their Customer Really Matter initiative and the subsequent OnQ program...

Words: 327 - Pages: 2

Premium Essay

Hilton

........................................................................................... 9 PEST Analysis .............................................................................................................. 9 Political Factor .............................................................................................................. 9 Economic Factors....................................................................................................... 11 Social and Cultural Factors ....................................................................................... 12 Technology Factor...................................................................................................... 13 Porter’s 5 Forces Analysis for Hilton Hotel ................................................................. 14 Bargaining power of Customers ................................................................................... 15 Bargaining power of Suppliers ..................................................................................... 15 Threat of New entrants .................................................................................................. 15 Threat of Rivalry...

Words: 7202 - Pages: 29

Premium Essay

Hilton Hotel Crm

...Hilton Hotel Corporation The Hilton Hotels Corporation, one of the leading international companies in the hospitality industry started with a humble beginning in 1919, when Conrad Hilton bought the first of what would later become an international chain of hotels and resorts, revered by competition and valued by customers, for the high quality of hospitality and leisure services provided as well as original hotel and travel concepts presented. With an international portfolio of 9 hotel brands that extends to up to 79 different countries worldwide, the Hilton hotel corporation has more than 3,400 hotels spanning the globe and approximately 22 million guests across all nine brands owned by Hilton. The goal Hilton aspires to achieve however is to be the first choice of guests, team members and owners alike, the paramount global hospitality company, which is reflected solidly within the company’s core values which are the drive of the corporation’s team members. H HOSPITALITY I INTEGRITY L LEADERSHIP T TEAMWORK O OWNERSHIP N NOW (Hilton worldwide, 2009) Through creating exceptional guest experiences, Hilton was able to ensure that each customer is made to feel valued. Challenges However, with an increasing number of competitors in an aggressive and quite competitive market, A diverse number of properties in 79 around the world, each with unique cultural norms and traditions and a changing hospitality market, due to the increasing bargaining power customers...

Words: 2934 - Pages: 12

Free Essay

Fact

...LEGISLATION This factsheet is a quick guidance of some useful and required legislation and policies that we, as a business need to know. Further in the factsheet there will also be some examples to show how it can be done according to the laws and policies. The legislation is also known as Act of Parliaments, this is the laws where it has been produced by the government, in order to authorise, to sanction or to restrict, which is outlining the protection to the public as individual, teams or organisations. It is another way to keep the public safe from any circumstances. The laws needed There are many laws that we, business industry will have to follow. Also, we have to clearly understand these laws in order to be able to run the business successfully, however there are some main laws that are related to customer service and it is compulsory for the businesses to succeed, as following: The Sale of Goods Act, The Health & Safety Act, The Data Protection Act and The Equal opportunity Act. The Sale of Goods Act 1979, goods must be as described. This mean when you sell the products to customers you’d have an agreement or contract with them, if the product they received doesn’t seems to be as described, this act could take place. Therefore, each product has to match the description, fit the purpose and satisfactory quality. This act could take up to 6 years from the date of purchase. However if the products they have purchased are not as described, customers have the...

Words: 1246 - Pages: 5