Pestel Analysis and Marketing Mix for Hotel Industry

The provided document includes various references to academic papers and research studies related to pestel analysis and the marketing mix in the hotel industry. It appears to be a compilation of different sources, possibly for educational purposes or research. The content covers topics such as the influence of internet customer reviews on online sales and prices, PESTEL analysis of construction productivity enhancement strategies, and more. The document seems to be a collection of relevant information for students or researchers looking into marketing and hotel industry-related topics.

Assignment Title: Marketing Essentials
Unit Number and Name: Unit 2: Marketing Essentials
Unit Leader: Mr Peter Emelone
Student Name:
Student ID:
Submission Date:
1

Table of Contents
Introduction......................................................................................................................................3
Section 2..........................................................................................................................................4
Part A...........................................................................................................................................4
Overview of “Lancaster Gate Hotel”...........................................................................................4
Overview of “The Imperial Hotel”..............................................................................................4
7p’s Marketing mix......................................................................................................................5
Marketing Plan.................................................................................................................................9
Smart objectives of the marketing plan........................................................................................9
Situation analysis.......................................................................................................................10
PESTEL Analysis......................................................................................................................11
SWOT analysis..........................................................................................................................13
Marketing Strategies......................................................................................................................14
The marketing mix (4p) of “Lancaster Gate Hotel.”.................................................................14
STP (Segmentation, Targeting and positioning)........................................................................16
Competitors................................................................................................................................17
Budget............................................................................................................................................18
Research Method...........................................................................................................................19
Stakeholders of the plan.................................................................................................................19
Required source.............................................................................................................................20
Probable risk..................................................................................................................................20
Conclusion.....................................................................................................................................21
References......................................................................................................................................22
2

Introduction
The report is contained of the factors and aspects of marketing essentials. Marketing essentials is
very much essential and necessary for all types of organisation. Marketing is about creating
value, making a profitable relationship with the customer and satisfying the need of the
customer. For providing a clear view of this report and fulfilling the requirements of marketing
essentials, “Lancaster Gate Hotel” is selected. The 7ps of the marketing mix, along with a
marketing plan, will discuss in the report according to “Lancaster Gate Hotel.”
3

Section 2
Part A
Overview of “Lancaster Gate Hotel”
“Lancaster Gate Hotel” is situated in London and one of the fast-growing hotels in the hospitality
and tourism industry. The environment, structure and service of the hotel are so impressive.
Several rooms are there like deluxe rooms, suites, family rooms etc. A fabulous lobby, resort,
restaurant and also bars are embedded inside the hotel (Sullivan, 2018). With the proper
marketing strategies along with the best service, they are winning the heart of their customers.
Overview of “The Imperial Hotel”
For the comparison with the “Lancaster Gate Hotel”, in this report “The Imperial Hotel” has
been selected. Imperial Hotel is situated in the central of London. It is giving tough competition
with “Lancaster Gate Hotel”. Along with high decorated rooms, lobbies and others, it has already
introduced casino, gift shop and others inside the hotel (Arnold et al., 2019). It has always been
providing service at a low cost. Customer satisfaction is also one of the objectives of this hotel.
4

7p’s Marketing mix
Fig 1: 7p’s of Marketing Mix
Source: (Rafiq and Ahmed, 2018)
Product
“Lancaster Gate Hotel”
The main product of the hotel is to provide customer luxury hospitality service. Tourists,
businessman and several people visit this hotel every year for their activities. The hotel has
luxury rooms, resort, restaurants etc. The best part of the hotel is the employees are always ready
to provide service in time (Guthrie et al., 2018). Several events like a business meeting,
conference, national summit and other significant events are also hosted by “Lancaster Gate
Hotel”. Modern technologies are used in every single room of the hotel.
“The Imperial Hotel”
As it is already aforementioned that this hotel is giving a tough competition to the “Lancaster
Gate Hotel”. Therefore, similar products like hospitality service, satisfying the needs of the
customer etc. services are providing (Guthrie et al., 2018). The room of the hotel is well
5

decorated and consisted of air-conditioning, Wi-Fi, TV, PlayStation for kids, laundry services
etc. It has also bars, gaming zone inside the hole which provides the customer to have some
recreation.
Price
“Lancaster Gate Hotel”
Pricing is a little bit higher than “The Imperial Hotel”. It is the bitter truth, and the fact is that the
hotel is always looking forward to providing premium services to the customers. The target
people of the hotel are mainly upper-class people, upper-middle-class. The hotel offers luxury
services, and therefore the price is a little bit high (Presbitero, 2017). It costs around €100 for one
day in a standard room. The luxurious room and luxury suits cost about €150 for a day.
“The Imperial Hotel”
In the pricing strategy, it has been following differential pricing strategy. Like, its regular room
price for one day stand around €70-€80 (Presbitero, 2017). But, the price of its luxurious rooms
is more than “Lancaster Gate Hotel”. Elegant rooms and suites are cost around €160 - €200. The
main objectives of this hotel are to provide the best service at a lower price to the customer.
Therefore, it takes that amount of money according to the class of people, but it always provides
the best service to their valuable customers.
Place
“Lancaster Gate Hotel”
“Lancaster Gate Hotel” is situated in London and the place of the hotel is in an excellent
position. The surrounding environment of the business is so attractive, and therefore, tourists
always provide high value to this hotel. It is embedded on its owned property. The surrounding
of the hotel is so calm and harmony. Therefore, a businessman, along with tourists visit every
year to deal with their meeting activities. People booked rooms over the phone call, through
website, agency or from social media platform.
6

“The Imperial Hotel”
The Imperial Hotel is situated in the centre of London. As it is in the centre of London, several
tourists, people and job holders come to this hotel as it is not far away from the airport. It is
embedded in the city and those people who come to London for work, most of them get into this
hotel. The hotel has also adopted the channels for reservation through, travel agency, website,
third party, trivago (A Hottel Booking website) etc.
Promotion
“Lancaster Gate Hotel”
It has provided more focus on digital platforms to do the upgrade. Recently, it has invested
money in SEO. Also, it invites several influencers people who make videos or vlogs online for
getting new customers (Linsheng and Pan, 2019). This hotel provides more effort in the sell’s
promotion too on several occasions. Advertisements, OVC is also done by the “Lancaster Gate
Hotel.”
“The Imperial Hotel”
It provides more emphasise on offline than online. The hotel authority believes that customer
will engage in the hotel by seeing the advertisements on TV, billboards, leaflets, newspapers,
magazines and others (Linsheng and Pan, 2019). This hotel always organises several programs
and, on those programs, it provides a gift, bonus, merchandise, room facilities in terms of
promotion. Now, they are also taking social media marketing seriously.
Physical evidence
“Lancaster Gate Hotel”
The hotel is situated in London, but it is focusing on expanding its branches in new states.
Already, they are thinking to open a branch in Manchester. The restaurant has inside swimming
pool, game shows, restaurants and so many more things (Linsheng and Pan, 2019). It always
focuses on providing their customers with all the recreation in one package. The hotel is situated
in a calm and harmony place where people love to visit every year.
7

“The Imperial Hotel”
The hotel is a little lag behind than “The Imperial Hotel”, but it has already opened its another
branch in two states (Linsheng and Pan, 2019). It is situated in the centre of London, and its new
branch is also in the city. This hotel always focuses on those people who will look to get some
rest after landing in London.
People
“Lancaster Gate Hotel”
Around 1500+ employees work in “Lancaster Gate Hotel”. After recruiting new employees, it
always provides adequate training facilities for the employees. Hotel manager, Chef, waiter,
management people, room service workers and others work in the hotel. The hotel always tries to
make an environment where everyone will work as the hotel belongs to them (Pretorius, 2017).
Several programs and meet up events are embedded by the hotel to increase productivity.
“The Imperial Hotel”
As it has already a new branch, now around 1600+ employees are working in the hotel. This
hotel believes that the productivity of the hotel will increase when an employee’s talent is going
to be developed (Pretorius, 2017). Therefore, after recruiting new employees, it provides all the
necessary training and then permits them to start work according to their departments.
Process
“Lancaster Gate Hotel”
The process of the hotel is so simple. When a customer comes to the hotel, they take them to
their room and provide everything to their place. 24/7 housekeeping service is provided to the
customers. Complimentary breakfast is also provided until the customer leaves the hotel.
“The Imperial Hotel”
8

This hotel first receives the customer then take them to their desire room. All elements are
provided prior customer entering in the place. All the recreation devices are always present in the
rooms of an individual customer. Delivering the food to the customer room, room service,
laundry service etc. are provided to the customers by the hotel.
Marketing Plan
Fig 2: SMART Marketing objectives
Source: (Cole et al., 2019)
Smart objectives of the marketing plan
The critical smart objectives of “Lancaster Gate Hotel” to increase the sales and service up to 3%
in the next year. It is essential to expand the business in new states or country in future. When
customers visit more, and through the data list of booking the result will be measurable. With
creating good customer relationship, developing services and implementing new strategies, the
goal can be accomplished (Cole et al., 2019) It is worthwhile as the hotel is looking forward to
increasing their sales. In the next year, the hotel is looking forward to achieving this objective in
a different period of the year.
9

Situation analysis
The current scenario of “Hospitality and Tourism” industry is contained of several competitors.
Competition is getting more competitive day by day. “Lancaster Gate Hotel” has made a good
brand value in London. But to retain the name in the competitive environment, it should look
forward to opening its branches more. In London, there are several hotels like Hilton Hotel,
Holiday Inn London and many more which are creating a tough competition for “Lancaster Gate
Hotel”. Therefore, it is high time for the hotel to come with new strategies and planning to
accomplish its goal along with retaining in the industry.
10

PESTEL Analysis
Fig 3: PESTEL Analysis
Source: (Yüksel, 2018)
Political Factors
The political factor of UK is stable, and therefore, it won’t effect on the hotel. UK government
emphasises much on hotel and tourism sector. Several benefits are present for the Hotel. But,
changing government legislation can affect the hotel adversely (Gregorić, 2019). It should
maintain good relation with the government.
Economic Factors
11

The economy of the UK is in a stable position. People income is good, and the unemployment
rate is low, which is a positive gesture for the hotel. Exchange rates in good work which is
helping the hotel to think about expanding (Gregorić, 2019). But COVID19 has affected so
severely on the hotel and tourism sector a lot.
Social Factors
There are less cultural barriers in the UK for a hotel to do business. The population growth rate is
quite good, which help the company to get efficient employees. For the COVID 19 impact, the
lifestyle attitudes of people have been changed (Pan et al., 2019). But on the other hand, people
also look to find a hotel which is providing the best safety environment in this global pandemic.
Technological factors
The hotel adopts modern technologies like automated equipment, Smart TV, card punch entry,
safety and security equipment and a lot. It is focusing more to adopt new technologies to make
the staying of the customer more convenient (Pan et al., 2019). It provides a lot of money on
innovation, along with research and development.
Environmental Factors
The surrounding environment of the hotel has provided a beautiful place for visitors to
experience. Weather change or climate change didn’t impact that much to the hotel (Kara,
2018). It has been focusing on reducing pollution from the environment. The hotel is thinking to
ban plastic uses in the hotel.
Legal Factors
All the labour laws, employment laws, health and safety laws are followed by the hotel
accurately. It didn’t take any employees who are under the age of 18 (Kara, 2018). The hotel
authority also ensures health and safety regarding employees working and even customers of the
hotel. The hotel treats the same both male and female employees.
12

SWOT analysis
SWOT analysis of “Lancaster Gate Hotel.”
13
STREGTH
Good reputation in the
market
Skilled employees and
qualified management are
strong part of the hotel
Opportunity
People now are focusing on
more high-profile Hotel due
to COVID 19
Hotel and tourism industry
are expanding day by day
Weakness
Less network marketing
power
Still lack of knowledge
regarding customer
Threats
Competitors
Low business activity

Marketing Strategies
The marketing mix (4p) of “Lancaster Gate Hotel.”
Fig 4: Marketing Mix (4p)
Source: (Constantinides, 2018)
Product
14

The products of the Hotel are the rooms and services. New developments, along with new
services, can boost up the hotel’s activity to reach its goal (Constantinides, 2018) The hotel can
introduce new high-profile places, newly decorated rooms. Several packages, discount offers on
occasion can attract the customers.
Price
The pricing strategy of the hotel is a little bit high. They should come with new rooms at a price
where middle-class people can also engage themselves in the hotel. Differential pricing strategies
can be introduced. On a different occasion, it should make less its price to attract customers.
Place
It is high time for the Hotel to expand branches in different states or different countries. Growing
the business will help to create a brand image (Öğüt et al., 2018). It will help to boost up the sell
and achieve the goals and objectives of the hotel.
Promotion
It should retain its promotion on digital platforms. Moreover, it should provide focus on offline
promotion too. The hotel can do promotion via collaboration with several companies or hotels. It
should do more advertising in public places (Öğüt et al., 2018). Sponsorship is another good
option for “Lancaster Gate Hotel” to extend its promotion level.
15

STP (Segmentation, Targeting and positioning)
Segmentation
“Lancaster Gate Hotel” provides focuses more on the upper class, upper-middle-class. But the
hotel should take care of middle-class people too. Moreover, it should attract all category of
tourists (Wahyuningsih and Mataram, 2019). Expanding its branches in more cities will help the
hole to reach its ultimate destination.
Targeting
The hotel mostly targets upper class and upper-middle-class people who are mostly between 18
to 50 age. It can introduce kids playing zone and make the kids influence their parents to get into
the “Lancaster Gate Hotel” (Wahyuningsih and Mataram, 2019). For older people, it should also
arrange new facilities.
Positioning
With better friendly service, they can create an image in the people’s mind (Wahyuningsih and
Mataram, 2019). It should come with new taglines and more TVC, to make the right mindset
regarding the hotel to achieve its goal.
16

Competitors
Tourism and Hospitality industry is one of the most competitive industry. Every day new
competitors are entering the industry. “Lancaster Gate Hotel” should acknowledge regarding
new entrants more (Davies, 2019). It should examine the plans and strategies of its competitors.
Several existing competitors are there for “Lancaster Gate Hotel” like Clayton hotel, Camden
Enterprise Hotel. The Imperial Hotel etc.
17

Fig 5: Travel and tourism to GDP in the UK from 2012 to 2028
Source: (CRISTIAN, 2020)
Budget
A hypothetical budget for next year:
Particulars Amount (€)
Market research 10,000
Advertisement 8,000
Owned media (Blog) 5,000
Social media advertising 6,000
Sponsorship 12,000
Recruitment (Freelance) 3,000
Banner, poster and promotion on billboards 8,000
YouTube promotion and boosting 10,000
Promotional campaign 10,000
Administrative cost 10,000
Selling expenses 8,000
Total 90,000
18

Research Method
For the marketing plan, secondary research method will be used. With the data files on online,
company’s prior performance, employee’s performance, list of customers, feedback list of
customers and other, the research is going to be done. Secondary research is more suitable for the
hotel to deal now (Stewart et al., 2018). From the company’s social media, website and third
party, the traffic of visitors can be easily examined.
Stakeholders of the plan
Stakeholders are so much crucial for every type of organisation. Their engagement is mostly
appreciable. In the marketing plan inter stakeholders like employees, management team,
designers, sales team, engineers etc. concentrations are needed. In the case of external
stakeholders, customers, society, government etc. engagements are so much significant too.
19

Required source
For establishing the plan, first of all, financial resources are needed. For creating new marketing
strategies, development of the hotel and others, finance is required. From retained earnings, the
hotel can manage finance. Bank loans are another option for the hotel to govern finance and
achieve their goal. Human resources are also needed to implement the plan. There are two ways
to get human resources for the hotel (Richardson and Domingos, 2019). One is internal, and
another one is external. External resources can provide creative and innovative employees which
the organisation mostly needed. Several platforms and websites are from that place, those,
“Lancaster Gate Hotel can gather human resources.
Probable risk
“Lancaster Gate Hotel” has a good reputation in London. If it marketing strategies failed then the
importance will go down. Objectives won’t be achieved if it has occurred. The employees may
not accept change. Therefore, employees won’t be attentive to do their task correctly. When the
marketing strategies are ready at that time, the new competitor may come with the same system.
In that time, “Lancaster Gate Hotel” plan and strategy will go in vain. Therefore, maintaining is
very crucial. Data should be collected regarding which method is working and which are not. A
contingency plan should be present as alternatives.
20

Conclusion
A marketing plan can help an organisation to achieve its ultimate goal. For implementing a
marketing plan properly, an organisation should be careful regarding all its aspects and
resources. “Lancaster Gate Hotel” should acknowledge that environment and competitors are the
most vital factors during a marketing plan. This report will provide a clear understanding of a
marketing plan because all the aspects are clearly illustrated. It is high time for “Lancaster Gate
Hotel” to get the plans and come with an efficient marketing plan as this industry is rapidly
growing.
21

References
Sullivan, S., 2018. 10 ‘We are heartbroken and furious!’. Critical Theories, IR and'the Anti-
Globalisation Movement': The Politics of Global Resistance, p.174.
Arnold, C., Reitherman, R. and Whitaker, D., 2019. Building configuration and seismic design:
The architecture of earthquake resistance. STIN, 82, p.29506.
Rafiq, M. and Ahmed, P.K., 2018. Using the 7Ps as a generic marketing mix. marketing
intelligence & planning.
Guthrie, W.D., Coudert, F.R., Denegre, G., Rose, G.B., Scott, J.B., Strawn, S.H. and
Wickersham, G.W., 2018. PHILADELPHIA AND SPECIAL LONDON MEETINGS. American
Bar Association Journal, 10(7), pp.499-502.
Presbitero, A., 2017. How do changes in human resource management practices influence
employee engagement? A longitudinal study in a hotel chain in the Philippines. Journal of
Human Resources in Hospitality & Tourism, 16(1), pp.56-70.
Linsheng, F. and Pan, X., 2019, December. Study on the brand value promotion of hotel service
industry. In 2009 International Conference on Wireless Networks and Information Systems (pp.
354-357). IEEE.
22

Pretorius, P., 2017. The need for a computer-based central reservation system for smaller hotels,
guesthouses and resorts (Doctoral dissertation, University of Johannesburg).
Cole, K., Graves, T. and Cipkowski, P., 2019. Marketing the library in a digital world. The
Serials Librarian, 58(1-4), pp.182-187.
Yüksel, I., 2018. Developing a multi-criteria decision making model for PESTEL
analysis. International Journal of Business and Management, 7(24), p.52.
Gregorić, M., 2019, May. PESTEL analysis of tourism destinations in the perspective of business
tourism (MICE). In 22nd International Congress, Tourism & Hospitality Industry 2014, Trends
in Tourism and Hospitality Management.
Pan, W., Chen, L. and Zhan, W., 2019. PESTEL analysis of construction productivity
enhancement strategies: A case study of three economies. Journal of Management in
Engineering, 35(1), p.05018013.
Kara, E., 2018. A contemporary approach for strategic management in tourism sector: pestel
analysis on the city Muğla, Turkey. İşletme Araştırmaları Dergisi, 10(2), pp.598-608.
Constantinides, E., 2018. The marketing mix revisited: towards the 21st century
marketing. Journal of marketing management, 22(3-4), pp.407-438.
Öğüt, H. and Onur Taş, B.K., 2018. The influence of internet customer reviews on the online
sales and prices in hotel industry. The Service Industries Journal, 32(2), pp.197-214.
Wahyuningsih, S. and Mataram, S.T.P., 2019. PENGARUH TENAGA TATA HIDANG
PARIWISATA TERHADAP KUALITAS PELAYANAN DI HOTEL. MEDIA BINA
ILMIAH, 13(11), pp.1775-1782.
Davies, B., 2019. Industrial organisation the UK hotel sector. Annals of tourism research, 26(2),
pp.294-311.
CRISTIAN, M.G., 2020. AN OVERVIEW ON TOURISM’S CONTRIBUTION TO
GDP. Revista Economica, 72(2).
Stewart, D.W., Stewart, D.W. and Kamins, M.A., 2018. Secondary research: Information
sources and methods (Vol. 4). Sage.
23

Richardson, M. and Domingos, P., 2019, July. Mining knowledge-sharing sites for viral
marketing. In Proceedings of the eighth ACM SIGKDD international conference on Knowledge
discovery and data mining (pp. 61-70).
24