1) Which branding strategy is Hilton using? Why is this appropriate for Hilton?

2) How does the state of competition among hotels indicate where this category is in the product life cycle?

3) Is Hilton's product mix deep as well as wide? Explain your answer.

Hilton ( FORIE BAUSSEN/SHUTTERSTKE.COM Hilton Worldwide Expands to New Brands and New Markets Hilton Worldwide was founded in 1919, and the lodging giant is expanding by adding new brands and opening in new markets to continue its aggressive growth. Based in McLean, Virginia, Hilton has a wide prod- uct mix covering multiple brands. Its line of luxury hotels includes two brands, Waldorf Astoria and Conrad. It markets lifestyle hotels under the Canopy by Hilton brand and full-service hotels under four brands: Hilton, Curio Collection by Hilton, Doubletree by Hilton, and Embassy Suites by Hilton Hilton's hotel brands with limited services include Hilton Garden Inn, Hampton Inn by Hilton, Homewood Suites by Hilton, Home2 Suites by Hilton, and Tru by Hilton. Hilton is currently opening the doors to the first of more than two dozen Canopy boutique hotels. These are hotels in locations like Reykjavik, and its competitors. To achieve economies of scale and build Iceland, and Bethesda, Maryland, where customers can use their product portfolios, competitors are buying up hotel mobile devices for convenient check-in, then check out the brands at a rapid pace. InterContinental Hotels acquired neighborhood using the hotel's on-site bikes. Canopy hotels Kimpton Hotels, for instance, to take advantage of growing have open lobbies to invite lingering, a free gift waiting in interest in boutique hotels and to plant its brands in more every room, and free wine tastings in the evening to encour- cities. Marriott International acquired Starwood Hotels, and age mingling. AccorHotels acquired Fairmont, among other hotel brands. Another of Hilton's newer brands is Tru, a group of more The industry is also feeling competitive pressure from rental than 100 mid-priced hotels designed with Millennials in services such as Airbnb, which link owners of apartments, mind. Introducing the brand, Hilton's CEO stated: We have condos, and homes with customers who want to rent for a a very large swath of demand that indexes very young, and day or longer. we're not serving it." The company's analysis indicates that Rather than buy an existing brand, Hilton is develop- 40 percent of demand for hotel rooms comes from customers ing its own hotel brands from scratch so it can build in the seeking affordable accommodations. Tru is geared to travel- features and services desired by particular target markets, ers in their twenties and thirties who want accommodations with appropriate pricing. It is also entering new markets, with a modern design and a reasonable price, plus opportuni- such as Bolivia and Chad, bringing its total to more than ties to personalize the experience for individual needs. 100 countries. With a portfolio of 13 brands covering hun- Each Tru hotel has flexible public space areas for cus- dreds of thousands of rooms worldwide, Hilton is well posi- tomers to enjoy as they choose: some may want to play foos- tioned to meet the needs of a wide range of customers in a ball, others may do a bit of work, while still others will relax wide range of locations, now and in the future.92 in easy chairs or get a snack from the "grab and go" eatery. Tru's guest rooms are smaller than typical U.S. hotel rooms Questions for Discussion but carefully set up with amenities preferred by the target 1. Which branding strategy is Hilton using? Why is this market, such as free Wi-Fi, 55-inch televisions, and show- appropriate for Hilton? ers rather than bathtubs. Tru will compete in the mid-priced market with rival brands such as Comfort Inn by Choice 2. How does the state of competition among hotels indi- Hotels and Marriott's Fairfield Inn & Suites. cate where this category is in the product life cycle? Meanwhile, the marketing environment continues to 3. Is Hilton's product mix deep as well as wide? Explain evolve, leading to challenges and opportunities for Hilton your