The brand name Hilton holds tremendous value. We at Marketing Eye feel that a lot more can extract by using this brand and targeting different segments of the society. In the recent decade or two, hotel marketers have understood the importance of branding. The author further stated that brand extension has been used extensively in order to try to cater to growing competition. The idea here is that in Australia specifically, Hilton can extend its brand and try to target a new segment. It is suggested that Hilton Hotel ventures towards differentiation. It should target a new segment with a new (relatively) service. In the year 2015, 1.9 million visitors are likely to come in Australia and shall stay in the country in the medium term. Students, workers, and researchers make up a large number of these visitors. Unless corporate pays the clients, workers or researchers are unlikely to stay in the Hilton hotel. If the individual is looking at staying for a few months, cost becomes a pivotal factor. Especially, for students who come from different countries, have limited working opportunity, look for cheaper alternatives not just in terms of accommodation but also for food. These people are living without their families and unlikely to cook for themselves. If Hilton Hotel can provide them their taste of food at a reasonable rate with to this market, they can significantly increase their sales. The brand is globally recognized and that shall help the hotel significantly marketing.
There are a few alternatives present in the market which are catering to these segments. There are local smaller hotels or motels which offer medium term accommodation & food. Especially for workers and people coming in a few weeks, services like Air b n b presented a cheaper option however, that does not include food. A lot of such people are living in undocumented (or otherwise) are unable or just unwilling to cook. This growing target can be targeted with low-cost market penetration strategy. The menu will have to be altered to match the taste of the target audience. This low-cost strategy can be applied on University hostels as a group and students who are living in Australia, study and work long hours. On the other hand, corporate clients who invite workers and researchers in large numbers can be targeted via product differentiation. Food and drinks can be modified and delivered as per the requirement of the corporate clients. Moreover, even for an individual client, the Hotel can try to customize the product as much as possible. As the number of incomings increases from various backgrounds in Australia this market can grow further and can be exploited. The brand of Hilton will give a competitive advantage over small competitors. The idea clearly is can boost sales of the restaurant at Hilton as it opens up to a completely new market.