The assignment discusses Travel-lodge's implementation of a marketing plan to achieve its objectives. The company employed differential pricing and segmentation of marketing strategies to launch premium rooms. Research indicates that marketing functions played an important role in achieving these objectives.
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HOSPITALITY MARKETING ESSENTIALS
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Table of Contents INTRODUCTION...........................................................................................................................1 MAIN BODY...................................................................................................................................1 P.1 Roles and responsibilities of marketing and how it interrelates with other functional units. .....................................................................................................................................................1 P.2 Roles and responsibilities of marketing functions within wider organisation......................2 P.3 Comparison of the ways that applies to elements of marketing mix....................................5 P.4 Marketing plan for Travel-lodge...........................................................................................9 CONCLUSION.............................................................................................................................12 REFERENCES..............................................................................................................................13
INTRODUCTION Hospitality industries involves sectors that deals in food and beverages services, accommodation, travel and tourism, recreation and entertainment sectors. These industries work with an aim of providing comfort and peace to consumers with whom they are dealing. They are involved in highly managing various factors like human resource, marketing, finance and promotional department in order to achieve there business objectives. It has been analysed that Hospitality firms are increasing at a faster pace and creating a different place for them in the region or across the globe (Armstrong and et.al., 2015). Report highlights the role and responsibilities of marketing functions within Travelodge that supports them in achieving business objectives. Assignment also discussed about the roles and responsibilities of marketing functions relating to wider organisational context. Paper highlights the ways in which different hospitality organisations apply the marketing mix to the marketing planning process to achieve business objectives. Assignment also discusses marketing plan in order to meet business objectives of Travelodge. MAIN BODY P.1 Roles and responsibilities of marketing and how it interrelates with other functional units. Brief description of Travelodge. Travelodgeisoneofthepopularbrandinthehospitalityindustry.Thecompanyisinvolvedinprovidingquality accommodation and travel services. They have opened several outlets in the region and across the globe. Firm is been known to the consumers for there well furnished infrastructure and room services. Travelodge is involved in selecting their location near the airports, railway and bus station so that more consumers are attracted towards them. Roles and responsibilities of marketing functions within Travelodge Roles and responsibilitiesMarketing functions execution in Travel-lodge Market researcherMarket research can be done by Travel lodge through with the help of marketing functions. The research will assist 1
company in knowing the needs and demands of consumers. It will support in achieving the business objectives. By this organisation can also gain competitive advantage. Market plan developerMarketing functions assists in developing plans for Travel- lodge.Thiscanalsosupportmanagerofcompanyin evaluatingandforecastingthefuturerisk.Itwillmake organisation in identifying the target market for the future needs and demands (Kumar,2014). Plan can be prepare by firmrelatingtothequalityofproduct,consumertobe targeted. Relationship builderTravel-lodge will be benefited by this marketing function as it will help company in building relationship with consumer by deliveringthemqualityofservice.Also,itwillassist customer in making them aware about the brand and services offered by organisation. Brand PromoterMarketing will help Travel-lodge in promoting the product or serviceofferedbythem.Thiswillasssitcompanyin attracting wider range of consumers and also by delivering them quality products they can retain them. Making them aware about brands will allow them to choose Travel-lodge that will increase their revenue. 2
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P.2 Roles and responsibilities of marketing functions within wider organisation Organisation chart Illustration1: Organisation chart Source: (Marketing functions,2007) Roles and responsibilities of marketing in the context of the marketing environment RoleResponsibilitiesHow they relate to each other 3
and marketing environment StrategyMarketingfunctionshavea responsibilitytodevelop strategy for business in order to achieve their goals(Kumar, 2014).Travel-lodgecanuse varioustacticslikesales promotion,publicrelation whichcanhelpthemin expanding their market share. Developingstrategiescan supportTravel-lodgein identifyingopportunitiesthat can foster their growth. It also assistsinanalysingtherisk factors which might comes in the path of company. Also, by creating strategies organisation can have an idea of how to overcomethecompetitors products. It will enhance the working efficiency of firm. Sales supportCooperation between the sales andmarketingfunctioncan assist company in improving or increasing the sales of the product or service offered by them. The sales team also have a role to provide support to companybyprovidingor deliveringhighqualityof Marketing and sales functions areinter-linkedwitheach other. Travel-lodge would get benefit of it as promoting their service will increase their sale. Also, sales support staff will provide company with idea of competitors product by doing 4
services.market analysis of their goods. Information providerMarketing functions also have roletoprovideinformation relatedtocompetitors, suppliers,investors(Kumar, 2014).Travel-lodgewillget benefit of it as the company will be able to have sufficient amount of data related to the trends running in the market. Travel-lodge can get benefit of having competitive advantage asmarketingwillassist companyinhaving informationrelatedto competitors, media and various other segments of the market. It will also help organisation in preparing for future risk, Also, the company would be able to explore new range of market segments. Significance of inter-relationship between marketing and other functional units Marketing & room division-Marketing and room division are inter-linked with each other. As Travel-lodge is involved in providing room services to their consumers. Appropriate marketing will help customer to know about the products delivered by company. This will allow organisation to make consumer aware about the prices, offer and food and beverages given in room division by the Travel-lodge. Promotion of the products would help organisation in attracting the new and wider range of customers. This will help company in increasing their revenue. Marketing & food and beverages; Travel-lodge through marketing can make consumer know about the variety and range of food and beverages offered by them Through blog posting or using their website they can make customer know about the prices of 5
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food also they can solve queries of consumers through marketing functions. Marketing of food product can increase the sell of company which direct lays impact on the revenue organisation. It will also enhance good will in market. Key elements of marketing functions and there inter-relationship with other functional units Marketing of the product attracts consumer to purchase the goods.Price and purchase of goods and services offered by travel- lodge are also inter-linked with each other. If price of the product is set high by company then they might think before availing it. Also, purchase decision is directly linked to the consumer economic conditions(Kumar, 2014). Marketing also make consumers aware about the services provided by the company. Room division and product element of marketing mix is inter linked as Travel-lodge must be involved in giving high quality of goods to consumers. Also, room given by them must have proper infrastructure and better living facilities in order to increase their sale. Marketing functions like promotion assists company in building new relationships with consumers that also increases their sale.Food and beverages plus promotional strategies are inter-linked as if travel-lodge will promote their product more consumers will be attracted towards it. Also, they can give the benefits of their food and beverages through online marketing. Company can make consumer aware about what nutrients they have used while preparing food. Travel-lodge while marketing product can also expand their market share.These factors have a relationship as travel-lodge will be engaged in choosing place which is easily accessible to consumers. Also, they will select a place where human resource is available easily. P.3 Comparison of the ways that applies to elements of marketing mix BasisIndustry 1- Mac DonaldIndustry -2 Travelodge ProductMacDonaldisengagedin giving high quality food and beverages. They have a main Travelodge is been engaged in providingserviceslikethey offerhighqualityfoodand 6
focus on the product delivered by them in order to earn more revenueandestablishinga goodwillinthemarket. Companyprovidesfoodlike hamburgers,shakesand dessertswhichisbeen prepared according to the taste and preferences of individuals ofparticularregion(Kumar, 2014).Preparingfood accordingtoconsumers supportsfirminretaining them. ebeveragetothepeople stayingintherehotel, accommodationservices,. Theyarealsoengagedin providingbanquethallsfor smallfamilyfunctionor birthdaypartiesorindustrial meetings. Firm is engaged in enhancingthequalityof servicesbydoingmarket analysis which supports them in growing. PriceMac Donald has set up there priceaccordingtothe economic condition of people. It means hat cost is been set in such a way which is affordable by consumers. Also, nominal amount of profit is been earned by them. They are engaged in Travelodgehaskeptthere price by keeping in mind the cost kept by competitors, so that they can have competitive advantage.Also,theyhave adopted pricing strategies like cost plus pricing in which they set the price of there rooms by 7
providing high quality product at low prices. keeping in mind there profit. Theyalsoprovidepackaged offers to consumers in order to earn more amount of revenue. Firm also provides discounts to the new and loyal consumers so that they can retain them. PlaceMac Donald has set up there outletsbydoingmarket research,sothattheycan establishtherebusinessata placewherethedemandof theirproductishigh.There product is most preferred by adults,sotheychoosethe placewhereyoungadults usuallygolikeinshopping malls,citycentreandmany more.Also,theplaceis selectedwhereitiseasily accessible for people to come. Travelodgehasestablished there business where they can have benefit of cheap labour andhumanresourceisalso available in abundance. Also, they are engaged in selecting placeorlocationwhichis easily accessible by travellers. They find place which is quiet peacefulandenjoyablein ordertoprovidecomfortto theirclientsorconsumers. Thisfactorhelpsthemin creating goodwill in the mind of customers. 8
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PromotionMacDonaldisengagedin usingvariouspromotional strategieslikeadvertising, directmarketing,personal selling (Armstrong and et.al., 2015). They are involved in buildingpublicrelationby solvingthefeedbacksand issuesofconsumers.Also, advertising is done by them on various online platforms like Facebook,Instagramor Twitter.Theyalsopromote their goods on billboards. Travelodgeisusing promotionalstrategieslike directmarketing.Theyare makingconsumersaware about there product or services throughfacetoface conversations.Also,they doing marketing through sales promotionalmethodslike offeringdiscounts,free coupons,givinglowprice packages to their clients. PeopleMacDonaldisengagedin hiringpeoplewhohave effectivecommunication skills(Chumaidiyah,2014).. Theyarerecruitingpeople whocanbuildastrong consumerbaseandattract morenewcustomers.They Travelodge is recruiting highly qualified and skilled people so thatalltheoperationsand activitiesinvolvedinthere firmisbeenperformed properly. Hiring qualified staff helps them in expanding there market and share and buildsa 9
also heirs individuals who are goodatsolvingissuesof public and do not get annoy quickly. brand value in the market. ProcessMacDonaldisinvolvedin following easy and transparent process. Like for example they areveryhonestinthere services food is been prepared infrontofconsumers(Stead and Hastings, 2018). Travelodge is also involved in followingprocessesthat supportstheminachieving their business objectives. Also, while following process they keep in mind there goal and objectives. Physical evidenceMacDonaldhavemarked therephysicalevidenceby providingconsumerswith attractive interiors and designs of restaurants. Plus they have alsoprovidedfranchiseof thererestauranttovarious individuals across the glob Travelodge haveengaged up with varied hospitality booking chains and internet websites so tomakethereevidenceor presence in the market. They havebeeninvolvedin establishing there business at manyplaceswhichmarks therephysicalevidencein market. Different tactics applied by Travelodge 10
Travel-lodge can make use of various strategies in order to achieve their business objectives. These strategies can be- Social media marketing- Travel-lodge can promote their product on social media platforms like Facebook, Instagram, Twitter and many more. This will help them in reaching a wide range of consumers which will help company in achieving their objectives(Stead and Hastings, 2018). . Word of mouth: Travel-lodge can promote their services through word of mouth publicity. They can engage with their consumers by making them aware about the quality of products offered by them. This can also build positive relationship between them. P.4 Marketing plan for Travel-lodge Executive Summary Marketing plan will assist Travel-lodge in launching of the premium rooms in the region through methods like planning for budget. It will determine the strategies, segment the market and position their company using segmentation and differentiated targeting strategies. Objective Travel-lodge has the main aim to attract more new consumers through their premium rooms and increase their profitability. Situational analysis Swot Strength Thepremiumrooms whicharebeen launchedbyTravel- lodge is at affordable price. Also company is Weakness Companywhile promotingisproduct is not making use of socialmedia marketing(Chumaidiya Opportunities Travel-lodgehasa hugeopportunityto expandtheirmarket share byimplementing lawsandschemes Threats Politicalnorms,rules andregulationsplus taxationpolicies implementedby authorities can act as a 11
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engagedinproviding offerpackagesat discount rate to their consumers (Stead and Hastings, 2018). h, 2014). . Also, they are not offering wide ranges of rooms to the consumers which can act as weakness. relatingtoprotecting theenvironment. Beingecological friendlycansupport theminexpanding their market share. threat for company. Porters five forces Bargaining power of buyerModerate Potential entrantsHigh Bargaining power of supplierLow Industry competitorsModerate Threat of substitute productsHigh Elements of Marketing mix Product: The rooms provided by travel-lodge is of premium range. It will contain fully facilitate infrastructure with room service facilities. The interior design would be attractive. Also hotel will contain other facilities like gym, swimming pool etc. Price:Prices offered by travel-lodge will be according to the economic condition of people. They will indulge in providing competitive prices to their consumers. Through this they can also gain competitive advantage. Promotion: Travel-lodge will promote their rooms via various promotional techniques such as advertising, print media, word of mouth publicity and many more. 12
Place: Travel-lodge will establish their rooms on places which are easily accessible by consumers and also where lot of tourists are being attracted (Chumaidiyah, 2014). Segmentation, targeting and positioning Travel-lodge will be engaged in applying demographic segmentation strategies. This will help them in attracting consumers that can afford premium rooms. Also, this can assist company in providing goods according to the needs and demands of consumers. Segmenting will be done through differentiated marketing strategies. Here firm will look out on customers with unusual wants. Than, they will try to fulfil their needs. Multi segment target strategy will also be utilise by travel-lodge. It can help them in targeting customers according to their needs and desires. Further, positioning strategy will also be used by company. This will allow company in utilising the resources effectively and minimising the waste. Budget In order to promote their premium rooms, travel-lodge has set up a budget of $50,000. They have also forecasted that they will achieve a sales target of $60,000 in this financial year. Controlling and monitoring Monitoring and evaluation function will be performed by the managers of travel-lodge through taking a deep analysis about the activities undertaken by organisation (Bahadir, Bharadwaj and Srivastava, 2015). They will also take feedback from consumers and evaluate if customer is being satisfied or not. This will support company in analysing the effects of existing practices. Detailed evidence based marketing plan for travel-lodge Travel-lodge is going to launch its premium room for the consumers. For this they need to prepare an evidence based marketing plan. Company will be involved in defining their objectives, vision and mission. The aim of travel-lodge is to successfully launch their premium room services and expand their market share. For this they are setting up budget which will assist them in forecasting the result of the activities undertaken by the organisation. Also company is using differentiated marketing strategy that will help them in segmenting the market. Organisation will target the consumers according to their needs and demands. They will provide 13
them with high quality products and appropriate room services with proper interior. Furthermore, use of differentiated and multi- tasking strategies would be beneficial for firm as it will allow them to increase their revenue. This method will also attract more consumers. Strategic marketing plan Business objectivesMarketingmix strategies TacticsMonitoringand evaluation Toincreasethe revenueoftravel- lodge In order to achieve this objectivetravel-lodge would be involved in usingdifferential pricing strategy. Also, itwouldselectplace whichwillbeeasily accessibleto consumers(Bahadir, Bharadwajand Srivastava,2015). High quality luxurious premium room will be provided by company. Forachievingthe objective differentiated marketingandprice persegmentstrategy wouldbeusedby company.Itmeans theywouldbe involvedinoffering productwhoseprice would be different for varied consumers Monitoringand evaluationwouldbe donebytaking consumers' feedback. To expand the market share of travel-lodge Inordertoexpand market share of travel Demographic segmentationand Testmarketing strategies will be used 14
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lodgeroomswillbe offeredataffordable price.Also,various promotionalstrategies likesocialmedia marketing,direct marketingwouldbe done. Also, the place selectedbythe companywouldbe attractive which would retain more customers. differentiated marketingstrategy wouldbeuse.They will also make use of place where abundant humanresourcesare availabletothe company.Also, promotionwillbe donethroughvarious segmentslikesocial media, online and inter net marketing bytravel-lodgein order to monitor and evaluate. Gainingcompetitive advantage. In order to achieve this objectivetravel-lodge would be involved in usingvarious promotional activities. Also,theywouldset price according to the economic condition of peoplelivinginthat Segmentedmarketing strategiesand differentialpricing techniqueswillbe usedbycompanyin ordertogain competitive advantage. Also,promotionwill bedonethrough Evaluationand monitoringcanbe done by analysing the satisfactionlevelof consumers.Thiswill helptravel-lodgein gainingcompetitive advantage. 15
area. Also, the rooms offered will be of high quality and low rate. advancing technologieslike social media channels. CONCLUSION From the above study it has been summarised that Travel-lodge has achieved its objectives by implementing marketing plan. Also, strategies like differential pricing and segmentation of marketing has helped company in launching premium rooms. Research explained that marketing functions has played important role in achieving objectives. 16
REFERENCES Books and Journals Bahadir, S.C., Bharadwaj, S.G. and Srivastava, R.K., 2015. Marketing mix and brand sales in global markets: Examining the contingent role of country-market characteristics.Journal of International Business Studies.46(5).pp.596-619. Khan, M.T., 2014. The concept of'marketing mix'and its elements (a conceptual review paper).International journal of information, business and managemen.6(2). p.95. Chumaidiyah, E., 2014. January. The marketing mix strategy in influence to the competitive advantage. InProceedings of the 2014 International Conference on Industrial Engineering and Operations Management Bali, Indonesia(pp. 818-826). Kumar, M., 2014. Importance of pricing methods in forming a marketing mix strategy.International Journal of Research in Finance and Marketing.4(6).pp.9-17. Chandra, P.S., 2016. Perceptions on Marketing Mix Strategies Practised by The Employees of Organised Retailers.ZENITH International Journal of Multidisciplinary Research.6(2). pp.12-22. Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix: getting the balance right. InSocial Marketing(pp. 29-43). Psychology Press. Armstrong, G. and et.al., 2015. Marketing: an introduction. Blakeman, R., 2018.Integrated marketing communication: creative strategy from idea to implementation. Rowman & Littlefield. Online Marketingfunctions.2007.[Online].Availablethrough<https://www.entrepreneurship.org/articles/2007/01/monitoring-and- controlling-marketing> 17
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