Creation of Marketing Plan

This document discusses the creation of a marketing plan for Red Roof Inn, a hotel planning to expand its online presence. It includes mission, vision, marketing objectives, SWOT analysis, PESTEL analysis, STP analysis, marketing mix, and competitor's analysis. The marketing plan aims to increase sales, market share, and online presence.

CREATION OF
MARKETING PLAN

TABLE OF CONTENT
MARKETING PLAN......................................................................................................................1
Executive summary.....................................................................................................................1
Mission........................................................................................................................................1
Vision...........................................................................................................................................1
Marketing objectives...................................................................................................................1
SWOT..........................................................................................................................................2
PESTEL.......................................................................................................................................3
STP..............................................................................................................................................4
Marketing mix.............................................................................................................................6
Competitors analysis....................................................................................................................7
CONCLUSION................................................................................................................................8
RECOMMENDATIONS.................................................................................................................8
REFERENCES..............................................................................................................................10

MARKETING PLAN
Executive summary
Marketing plan is the outline or blueprint which includes the advertisement and
promotion plans. It deals with the business activities in order to achieve business objectives by
choosing different strategies. Marketing plan is important for a company as it gives a market
analysis and on the basis of the research firm is able to meet its goals. The hotel Red Roof Inn is
planning to expand its business in online business plan in order to increase its online presence in
the market for which company need a marketing plan. The plan will include mission, marketing
objectives, vision, marketing strategies, SWOT, PESTEL, STP, marketing mix and competitor’s
analysis. The marketing plan will benefit company in achieving business objectives and increase
its online presence in the market against its competitors.
Mission
The mission of the hotel Red Roof Inn is to provide for the comfortable and clean and hygienic
rooms and very attentive servants and guest services.
Vision
To sustain in the market for long term and grow business by satisfying customers by
providing services in accordance with the needs and preferences of customers and to become a
leading competitor in the market.
Marketing objectives
 To increase the sales by 20 % in the year 2019- 2020.
 To increase market share by 5 % in 2019- 2020.
 To increase its online presence by investing in internet marketing by 10 % till end of
2019.
Statements and Justification of Objectives:
Hotel Red Roof Inn design various objectives such as improving the performance of the
employees, improving the profitability and also, the image of hotel along with the increase in the
sales, increase in the market share of the hotel and many other. These objectives are important in
hotel and with the help of those objectives hotel Red Roof Inn can achieve their targets in the
competitive market.
Latest trends in hospitality industry and its impact:
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There various trends in the hospitality industries which improve the experience and
qualities of hotel. These trends are providing healthy and organic food which gives customer
nutrient diet, providing the customers of the latest technological treatment which will improve
the customers experience in the hotel.
The impact of these trends on Red Roof Inn hotel is, it will helpful for enhancing the hotel image
in the market and by this company can improve their market share and customer base. With the
help of those trend's organization can create competitive environment in the market.
SWOT
Strengths: Strong brand image: the hotel that is Red Roof Inn has a strong brand image within the
market. This is because of the reason that the hotel provides for better and cheaper
services without hampering the quality of the services. This is the underlying reason that
why the consumers more like the hotel Strategic investment: As Red Roof Inn hotel is having strong financial performance thus,
company is able to invest in internet marketing in order to increase its sales and market
share. This will benefit by leveraging in different economies of scale and acquiring top
beauty brands and increase its online presence by the hotel (Sarsby, 2016).
Weakness: Competitive environment: Red Roof Inn is operating its business in competitive market
where it is challenging for company to compete with the global players like hotel Hilton,
Marriot etc. Increasing competition in the market also replace products with substitute
products. It creates difficulty to sustain in the market. Delay in services: this is another weakness which impact the business of hotel. This is
because of the reason that the services of the hotel are sometimes late and this degrades
the value of the hotel in the market and the reduces the goodwill of the hotel
Opportunities:
 Internet marketing or social media marketing: Company has new opportunities to market
its products through social media and increase its online presence as most of the
population is spending their time on using social media and is highly influenced by it.
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With help of this Red Roof Inn can reduce its marketing cost and increase sales by
attracting customers through online marketing. Growing economies: Company also has an opportunity to expand its business in new
economies as the standards of living is increasing thus, company can offer right products
to right customers at right place (Entezari, Karimi and Kianfar, 2014).
Threats: High competition: this is the major threat which the hotel faces. This is because of the
reason that the business of hotel is increasing with the increase in the standard of living.
This is the reason that the competitors for Red Roof Inn is increasing with high speed and
many different hotels have been opened in the market which impacts the business of the
hotel.
 Frequent changes- in this growing market there is a lot of changes taking place within the
market like changes in consumer taste and preferences, trends in food and eating habits
and many other different trends. Therefore, it is very costly for hotel to adopt for every
latest trend going on in the market.
PESTEL
Political factors
A significant role is played by the political factors in determining the profitability of the Budget
hotel. As Red Roof Inn is currently operating in dozens of countries, so it has to face various
different political environment & political system risks. Thus, before entering to the new market,
the various political factors analysed by Red Roof Inn are: regulations regarding industrial
safety, mandatory employee benefits, regulations related to work week & various laws related to
employees’ wages (Lancaster and Massingham, 2017).
Economic factors
Factors such as average investment in the economy, average demand, foreign exchange rates,
interest rates, saving rates & inflation rates are the various macro environment factors that
influences the Red Roof Inn before establishing to the new market. Some other economic factors
are also there that influences this hotel are: rate of unemployment, economic growth rate,
education level of the country & skill level of the workforce.
Social factors
The various cultural practices & the way of doing such cultural practices in the society directly
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influences the culture of an organization in that environment. Attitudes of the population & their
shared belief critically influences the marketers of the Red Roof Inn. Thus, some social factors
that influences Red Roof Inn can be carried out through PESTEL analysis such as: level of
leisure interests, attitudes of the individual towards health & environmental consciousness,
culture related to gender roles & level of education.
Technological factors
Advancements in the industry of technology is happening at a very fast rate in all sectors. To
cope up with these advancements of the technologies the industries also needs to undergo
technical updates to stand long in the market. Rapid advancement in technology may also disrupt
the industry. Therefore, slow speed of technical advancement will give enough time to the
organization to cope up with the environment & be profitable in the market. Some technological
factors that influences Red Roof Inn are: rate of technical diffusion, impact on value chain
structure in service sector & impact of structure of cost on lodging industry (Macarthy, 2018).
Environmental factors
It is understood that different markets have different environmental standards which eventually
impacts on the profitability of the industry. Moreover, even the different states of the one country
could have varying environmental rule or law related to environment & liability. Thus, before
entering the new market the Red Roof Inn focus on the several environmental factors of the
economy such as attitude towards renewable industry, endangered species, management of the
wastage, laws & regulations related to air & water pollution & change in climate as well as in
weather.
Legal factors
Protection to data, laws related to health & safety, employment ways, discrimination & as well as
antitrust laws are the several legal factors that influences the Red Roof Inn before it enters to the
new market. Therefore, legal factor is the framework which protects the intellectual property
rights of the company. Thus, a company carefully evaluate these legal factors before entering to
the new market (Sarsby, 2016).
STP
Segmentation:
Segmentation is a set of characteristics or variable used to assign potential customers to
different groups. It is a factor used to differentiate customers into different market segments.
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Segmentation can be done on 4 bases such as geographical, demographic, psycho-graphic and
behavioural segmentation. This basis of segmentation differentiates customers on the basis of
region, area, age, personal characteristics, opinions, interest, occupation, city or loyalty towards
brand. The Red Roof Inn has grouped customers on the basis of demographic and behavioural
segmentation. As company is expanding its business online then it will help the hotel in
understanding the behaviour and the needs of the consumers and then to provide for the different
food for satisfying their needs and preferences. It will be beneficial for company to offer
products as per the needs of customers.
Targeting:
It is a process of selecting potential customers to whom product will be sold. Targeting
involves segmenting the right market and determining what product will be offered to each
segment in order to target a specific market. Red Roof Inn uses differentiated target market
strategy where specific marketing mix is designed for each segment so that products is affordable
and available to each customer (Lancaster and Massingham, 2017). As company will target 2
segments, for loyal or potential customers company will design products, promotion, pricing
strategies according to their capability and for people having same age or gender organization
will offer products and price according to the segment.
Positioning:
Positioning refers to communicating the product in such a way that it creates a positive
brand image in the minds of customers. Organisation identifies strengths, weakness, customer’s
needs, market trends and positioning of competitors product and then formulates positioning
strategies. Red Roof Inn highlights features and benefits of the services in order to promote its
services in the market to compete. Company uses benefit positioning strategy where marketers
communicate unique features and benefits of a product to create strong brand image and compete
in the market by gaining competitive advantage (Perreault, 2018).
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Positioning Map:
Marketing mix
Product:
The products for the hoel Red Roof Inn are the food which it provides and the services
which it provides to the consumers. Here the products include all the services which is provided
by the hotel like the food, accommodation, lodging, room services and many other different
services.
Promotions:
Red Roof Inn hotel should formulate its promotion strategies by considering competition
in global markets. For expanding the business through online business method, the needs to
formulate its marketing mix and target audience through social media marketing. Nowadays
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most of the people are using social media and are getting influenced by it, thus it will be
beneficial for company to promote its products and services through online marketing and
increase its online business. It will help company in reducing the cost of marketing and
increasing market share (McDONALD, 2016).
Place:
Red Roof inn hotel want to provide its services all over the globe and for this it is
planning to expand its business via online mode so that it can reach to a large market area. Also,
the hotel is having many physical places in many different countries. By increasing the business
online, the hotel will be able to increase its sales and market share in the year 2019-2020.
Price:
Company will different pricing strategies by considering the level of product
diversification. Company formulates different pricing strategies and attract customers. For
example, for providing customise food services the hotel set pricing strategies according to the
target segments. If the target segments are potential and loyal customers then hotel will use
competitors pricing strategy in order to gain competitive advantage and if the target are
segmented on the basis of demographics then company will use penetration pricing strategy to
attract customers (Wrenn and Mansfield, 2014).
Competitors analysis
For analysing the competitors, it is very necessary for the hotel Red Roof Inn to do a
competitor’s analysis. The best model for analysing the competitors is the Porters Five forces
analysis. The model applied in Red Roof Inn is as follows-
Threat of new entrant- this force analyses the entry of the new entrants coming in the
market. With the help of this force it is easy to analyse the new entrants coming in the market
and deciding in advance the action plan to deal with the new entrants (De Pelsmacker, Van
Tilburg and Holthof, 2018).
Threat of substitute- this is another threat which is identified with this model and helps
Red Roof Inn to deal with the other hotel providing similar services. If the substitute provides for
the cheaper services then the consumers will shift to the substitute. Therefore, this helps the
company in analysing the substitutes and providing services in accordance with that of the
substitutes.
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Bargaining power of consumer- if the power of the consumers is high then the hotel has
to satisfy the needs and preferences of the consumers in any condition. If the needs are not
satisfied then it might be possible that consumers do not go to the place again.
Bargaining power of suppliers- this force analyses the power which is in hands of the
suppliers and how much control does they have overt the hotel. They can raise the prices and this
will increase the cost for hotel. Thus, they have to maintain good relation with the suppliers.
Competitive rivalry- this force analyses the current competition going on in the market.
This force helps in analysing the step that can be taken in order to deal with the competition and
to overcome the competition so that Red Roof Inn can beat the competition and come above all
of them (Porter’s Five Forces: Analysing the competition, 2018).
CONCLUSION
In the end it can be concluded that creating a marketing plan is very necessary for the
company. This is because of the reason that marketing plan helps the company in analysing the
trend going on in the market and then working in accordance with those trends. The marketing
plan helps in analysing the market conditions with the help of PESTLE analysis and also helped
in analysing the capabilities and weakness with the help of SWOT analysis. In the end also, the
marketing plan helped in analysing its competitive position in the market with help of application
of Porter five force model.
RECOMMENDATIONS
 The first recommendation to Red Roof Inn is to first analyse the latest trends in the
market which are currently going in. This is because of the reason that if the hotel does
not have knowledge about the latest trends then how it will market itself in the market.
 Another recommendation is that it should use all the latest techniques like online
booking, use of artificial intelligence and other latest technology in the working.
 Another recommendation is to hire a professional expert who is having expertise
knowledge in the field of marketing technology so that the employees of the hotel can get
knowledge of the marketing tools.
 One more recommendation for Red Roof Inn is to train all the staff to adopt to the latest
trend and also to arrange for the different training programs for development of
employee.
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 Another recommendation is to bring in innovation in the foods and services provided by
the hotel and the creativity in the presentation of the food to the consumers
 Another recommendation is to work in a clean and healthy way and to ensure that the
hotel maintains hygiene in the restaurant and provides for a safe and healthy ambiance for
the customers.
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REFERENCES
Books and Journals
De Pelsmacker, P., Van Tilburg, S. and Holthof, C., 2018. Digital marketing strategies, online
reviews and hotel performance. International Journal of Hospitality Management, 72,
pp.47-55.
Dib, A., 2018. The 1-page marketing plan. Page Two Books.
Entezari, A.R., Karimi, B. and Kianfar, F., 2014. Optimal production control and marketing plan
in two-machine unreliable flexible manufacturing systems. The International Journal of
Advanced Manufacturing Technology, 73(1-4), pp.487-496.
Lancaster, G. and Massingham, L., 2017. The development of a strategic approach to marketing:
Its culture; internal macro-and external micro-environmental issues. In Essentials of
Marketing Management (pp. 1-32). Routledge.
Macarthy, A., 2018. 500 Social Media Marketing Tips: Essential Advice, Hints and Strategy for
Business Facebook, Twitter, Pinterest, Google+, YouTube, Instagram, LinkedIn, and
More!. CreateSpace Independent Publishing Platform.
McDONALD, M.A.L.C.O.L.M., 2016. Strategic marketing planning: theory and practice. In The
marketing book (pp. 108-142). Routledge.
Perreault, W.D., 2018. Essentials of marketing. New York: Mc Graw Hill.
Sarsby, A., 2016. SWOT analysis. Lulu. Com.
Wrenn, B. and Mansfield, P.M., 2014. Marketing planning guide. Routledge.
Online
Porter’s Five Forces: Analysing the competition. 2018. [Online]. Available through
<https://www.businessnewsdaily.com/5446-porters-five-forces.html>
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