The assignment focuses on analyzing Travel-Lodge's strategic marketing plan, exploring how it has helped the company expand its market share and revenue. It also examines the role of marketing functions in linking with different functional units of hospitality industries to attract new consumers.
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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 P3. Comparison of the ways by different hospitality industries.................................................5 P.4 Marketing plan for Travel-lodge to meets its objectives......................................................9 CONCLUSION..............................................................................................................................13 REFERENCES..............................................................................................................................14
INTRODUCTION Hospitalityorganisationincludesvarioustypeofserviceindustriessuchashotel, restaurant, cruise line, event planning, food and beverage, travel-tourism and many more. It is that industry which is based on availability of leisure time and disposable income of individuals. The hospitality sector is involved in performing functions like maintenance, facility, marketing, managing resources etc. Report highlights key roles and responsibilities of marketing functions within Travelodge (Hanssens and et.al., 2014).Assignment discusses ways in which ways in which different hospitality organisations apply the marketing mix to the planning process to achieve business objectives. It also lays emphasis on marketing plan for a hospitality company to meet marketing objectives. MAIN BODY P.1 Roles and responsibilities of marketing and how it interrelates with other functional units. Hospitality organisation and its brief description Travelodge hotels and resorts is one of the largest hotel brands in the world. The brand targets at extending there business and provide various services like leisure travelling, food and beverages and accommodations. They focus on building a good brand image by imparting luxury and focus services to there consumers (Khan, 2014). Industry has been established in London, United Kingdom. Travelodge hotels and resorts has been set up in various countries and territories. They have chosen unique locations like major city centres, near airports, conventional centres and popular holiday destination around the globe. Roles and responsibilities of marketing functions within Travelodge Roles and ResponsibilityHow it executes in Travelodge PlannerMarketing is help to get potential customers with the awareness of the product or service for which business is established. Marketing helpsto make a pricing position for theproduct and service. Travelodge hotel execute the market panning in new products and service its plan on that how is there hotels infrastructure looks, they try to satisfied their customer and ensure the long term relation with 1
themTravelodgefocusistocreativesomethinginnovativein compare to other hotel. ResearcherExpansion of the tourist industry have not only gives profit to an individual it is now also impact on the nation's economy (Stead and Hastings,2018). Travelodge has gather information with different set like analysis of market and customer, with their needs wants and demand. DistributorMarketing also performs distribution function which means Travel- lodge can make their product or service available to consumer through proper distribution channel. Relationship builderMarketing also builds relationship between company and consumer HotelTravelodgethroughpromotingtheirproductcanask customer about the drawbacks in their services. This will develop relationship of trust and consumer loyalty. P.2 Roles and responsibilities of marketing functions within wider organisation 2
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Roles and responsibilities of marketing in the context of the marketing environment Role of marketingResponsibility of marketingThey Relate to each other Economic growth developer- Marketingplayingadirect active role in increasing sale of Travelodgebydoingproper marketingresearches, forecasting,productplaning andseekgrowthand expansionopportunity.Cost cuttingstrategies,customer satisfaction. Productresearchand development-itsmarketing department'sofTravelodge's responsibilitytofindout growth opportunity in product and place and innovation. For exampleTechnological upgrade,productpackaging, revisedpricing,strategyto covert potential customer into customer.Thiswillsupport Travelodge in growing Marketingresearchand forecastinggetsaffectedby suddenchangeinexternal factoraseconomy, governmentlaw,trendand technological,environmental disasters, global wave, change in policy from supplier, Financial resources, customer taste change.Internal factor likeAvailablefinancial sources,humancapital, 3 Illustration1: Organisational chart Source: (The Role of Marketing and Sales in Organizations and Its Impact on Performance,2013)
machines,landlabour availabilityalsodeviate predictions. Informationprovider– marketingisnotlimitedto only sale the product, it helps in gathering information about trends,demand,helpin identifysegmentationand targetingconsumer information about macro factor affecting product, help choose advertisement and distribution channel (Koo,Kim and Kim, 2016). Keepeyeoncompetition- marketing team keep their eye ontheirrivalsbyknowing theirfutureinnovationand strategies,industryanalysis, porter model etc. Data collection in Travelodge might get affected by human errorlikeincompleteness, misinterpretation,wrong information,irregulardata collection etc. Communicatorand promoter–marketingwill helpTravelodgein communicationthevision, objectives, commitments, acts toitscustomersaswellas employees.Selectmost suitablepromotionstrategy like social media, print media, onairpromotionandadopt feasible distribution channel to insure uninterrupted supply. ImproveBrandimageand customersatisfaction-by identifying need and wants of customerTravelodgeis involved in providing product ontime,betteraftersale service,easyreturnpolicy, appropriate price, short buying process, try to gain customer trust and satisfaction. Communication and promoters sometimeshurtwithmedia availability,languagebarrier, inadequateamountavailable forpromotion,characteristics of targeted customer etc. when raw material, labour, land cost increaseswithchangein property rate, revised tax. That raise the price of the product. Travelodge must take care of all these factors. Significance of inter-relationship between marketing and other functional units 4
Marketing and food & beverages:Marketing functions are interlinked with food and beverages. As, this functional unit is highly competitive, it becomes essential for Travelodge to develop a highly effective marketing strategy. Like for example if Travelodge is involved in marketing there food and beverages through blogging than people will try out new beverages and also provide them recommendations. In this way marketing can assist food and beverages to gain popularity. Marketingandhumanresourcemanagement:Marketingandhumanresource management are inter-linked as Travelodge needs to attract profitable consumers in order to increase their revenue. Customers can only be attracted via marketing and for this various methods like social media marketing, sales promotion, public relation can be used by company. Also, organisation will able to attract right talent with the help of marketing functions. Key elements of marketing functions and there inter-relationship with other functional units Marketing will assist company in promoting its various sectors such as food and beverages, room division, product and services. As if Travelodge is involved in attracting consumers through various promotional strategies like offering discounts on there food products, this will increase the sale of company. And also, if promotion is not done, there can exist a negative aspects like people will be unaware about the services offered by organisation (Khan, 2014). Also,marketingsupportsinmakingconsumerknowaboutthepricesofferedby company. Price and rooms provided by Travelodge to their clients are connected as if cost of the room set by company is high than they will be able to only fewer number of consumers. Plus if prices are kept at nominal rate and high quality is offered the revenue of organisation will increase. Marketing also supports company in making consumer aware about the place where company is located. It also makes consumer know about the new creativity and innovation brought up by company.They are inter-linked as if Travelodge is establishing there business at a place where abundant human resource is available than the organisation will grow. Also, when company is set up at a place where no qualified staff is present than it can hamper their business. Marketing also increases sales of the products.These elements of marketing functions are inter-linked with each other as consumer will only purchase or avail product and services 5
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when they are beneficial, of high quality and satisfy their wants. If goods given by Travelodge is not according to need and demands of customer they will not purchase it. P3. Comparison of the ways by different hospitality industries. Elements of 7 psFirm 1 Mc Donald Firm 2 Travelodge ProductMcDonald'shasadopted product mix strategy in order tomeettherebusiness objectives. They have diverged productlines.Companyis involved in delivering quality foodandbeveragesto consumer.Theysalefood productslikeMcmeal, hamburgers,burgers,French fries, Mc flurry, desserts etc. They are prepared by keeping customerstasteand preferences in order to adhere there satisfaction level. Travelodge hotels and resorts is involved in giving services like they arrange meetings for thereconsumers,provide banquethallsforwedding, quality food and services, well furnishedhotelroomsfor customers, travelling services. Theremainproductishotel roomswhichtheyofferto thereclientstostayfora particularperiodoftime. Travelodgeisinvolvedin enhancingthereservicesin ordertoattractandretain consumers. PriceMc Donald shares the largest marketamongfoodand beverages company across the globe.Industry is involved in settingandadoptingpricing strategiesthatareaffordable by consumers. They use the Travelodge hotels and resorts is mainly engaged in providing qualityaccommodation, travellingandfoodbeverage servicesinordertoretain consumers. For this they have adoptedpricepersegment 6
conceptofpricebundling. Like for example Happy meal provided by company includes variety of food and is available atacheaperprice.They standardisedtheregoods accordingtothetaste, preference, need and demand ofcustomer.Organisationis delivering low price and high quality food to there clients. strategywhichmeansthey offer same to type of product todifferentconsumersat variedprices(Steadand Hastings,2018).Also,they areinvolvedinoffering package services to customers. Thissupportsthemin increasing revenue, as it allow consumerstopayformore than one room.Company also use price parity strategy which providesdiscountstothere clients on direct booking. PlaceMc Donald selects place to sell there product or good which is easily accessible by consumers .Theyalsochooselocation wherethereisdemandand need for there product. Like for example Many outlets are been open by company near school or colleges as most of there clients are young adults or youth of country. Also, firm is involved in selecting place doingkeenmarketanalysis. This also helps them in gaining competitive advantage. Travelodgeisinvolvedin selectinglocationwherethe resources are easily available. Like for example they consist oflargehumanresource,so theychooseaplacewhere large number of cheap labour is available to them. Also, they are involved in setting up there industrynearairportor conventional centres. So that, they can attract more travellers or consumer. This strategy also supporttheminincreasing thereprofitorrevenue. Choosingtheplacecorrectly supportstheminincreasing 7
there market share. PromotionMcDonaldisinvolvedin usingdiverseandvaried promotionalstrategies.They areinvolvedinusingsales promotionmethodsby distributingdiscountcoupons whichattractsmore consumers. Firm also utilises public relation strategies lie for example they are involved in creatingcustomerand employerrelationship.Mc Donalddothereadvertising via billboards or hoardings that supportstheminretaining consumers. They are involved in doing direct marketing like home delivery services. Travelodgehotelandresorts alsousevariouspromotional strategieslikeadvertising, publicrelationanddirect marketinginordertogrow. Firm adopts methods such as advertisingthroughsocial media channels like Facebook, Instagram, Twitter and many more. By this they are able to attractawidevarietyof consumers.Theymaintain therepublicrelationby engaging in activities like CSR ororganisingcharityshows, seminarsandother.Also, directmarketingisdone throughprovidingconsumers withbenefitsofhotelvia personal conversation. PeopleMac Donald is involved hiring peoplewhohaveeffective communicationinorderto buildafriendlyrelationship withconsumers.Thiscan assistcompanyincreating consumer loyalty (Koo,Kim andKim,2016).Also, company is engaged in solving Travelodgehotelandresorts areinvolvedindirectly targetingthemarketand people. So that brand loyalty is beencreated.Companyis engagedinhiringpeopleor staff which is highly educated and well qualified. Hence, to maintain there consumer base 8
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issuesofpeoplerelatedto there organisations. theyprovideserviceslike supportdesk,organising entertainmenteventsfor clients. Physical evidenceMacDonaldhavemarked therephysicalevidenceby providingconsumerswith attractive interiors and designs of restaurants. Plus they have alsoprovidedfranchiseof thererestauranttovarious individuals across the globe. Travelodge group of hotels and resortshavetiedupwith varioushotelbookingchains and online websites in order to makethereevidenceor presence in the market. They have been engaged in locating there business at various places whichmarkstherephysical evidence in market. ProcessMac Donald underpins number ofactivitiestodeliverits goods. Like for example Firm isfullytransparent,they prepare there food product in front of consumers. Travelodgehotelandresorts areengagedinundertaking specific processes and relevant distribution system that attracts more consumers. Different tactics applied by Travelodge Travelodge can make use of varied marketing strategies in order to achieve there business objectives. These tactics can be - Paid media advertising-To achieve there business goals Travelodge can make use of advertising through paid media such as billboards, hoardings, television, radio and many more. This can support company in reaching wide range of consumers and also can assist in increasing there profit or revenue (Khan, 2014). Like for example creative advertising via television, newspaper or radio can make consumer aware about the services imparted by Travelodge. This assists them in creating brand awareness among customers. 9
Online or internet marketing- Travel-lodge can also make use of online marketing such as preparing website or blog post of there organisation in order to achieve there business objectives. Like for example with the help of this, they will be able to explore wider segments of market. This can also assist company in gaining competitive advantage. P.4 Marketing plan for Travel-lodge to meets its objectives Detailed coherent and evidence based marketing plan for Travel-lodge Setting objectives:The main objective of travel-lodge is to launch new premium rooms and expand its market share. Situation analysis-Travel-lodge is going to launch premium rooms for their consumers. For this first they need to analyse current stage and market condition. As it is very necessary for the organisation. Like for example if country is going through period of crisis than launching of new rooms might hamper the profit of the organisation (Stead and Hastings, 2018). 10 Illustration2: Evidence based marketing plan Source: (Marketing Plan,2015)
Vision and mission-The vision and mission should define the goals and objectives of travel-lodge so that they can achieve it. Mission should describe their short term objectives and visionshouldbe made realated to launching of rooms (Dzhandzhugazova and et.al., 2016). Segmentation,marketingandpositioningstrategy-Industrywillmakeuseof demographic segmentation strategy it will support in targeting consumers according to their needs and demands. It will provide services and rooms on the bases of age and family size. Travelodge is also involved in using differentiated marketing strategy. It will use multi segment targeting strategy that will help in laying more attention on consumers. Furthermore, cost positioning strategy will be used by Travelodge. It will concentrate on effective utlisation of resourcesso that cost can be minimised(The Segmentation, Targeting and Positioning model, 2018). Budget- In order to promote the product of company, entity will require investment of £45000. It will have to pay salaries to employess rent and administration expenses. But it is expected that it will be able to generate sales of£60,000 in the financial year Assessment-Travel-lodge while bringing premium rooms in market, needs to assess of what next have to be done in order to make their program more successful. They are required to assess the trends, lifestyle factors and economic condition of people where organisation is launching their services (Stead and Hastings, 2018). Only by doing keen assessment of these factors they can be able to achieve their business objectives. Research-Travel-lodge in order to achieve business objective of opening premium rooms needs to do market research about the competitors in order to gain competitive advantage. They need to have an idea about market acceptance of product and services. Strategic marketing plan using 7 P's Business objectivesMarketingmixand strategies TacticsMonitoringand evaluation The main objective of travel-lodge is to open newpremiumroom servicesforit's consumers Themarketingmix elementswhich company needs to take careofismainly priced.Theyneedto Foradoptingpricing the tactics which can beusedbytravel- lodgecaninclude pricepersegment Monitoringand evaluationofthese strategies can be done bymeasuringthe consumerresponses 11
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set up price which is affordableby consumers.Also, organisationmustbe involveindoing promotionofthe rooms through varied promotionalstrategies likewordofmouth publicity (Pavlou and Stewart,2015).Also, the place of launching ofroomsshouldbe selectedbycompany wisely as its is one of themostimportant factortoattract consumers. strategy which means thattheycanoffer differentialpricesto variedsegmentsof consumers.Various promotionalstrategies suchasdirect marketing or with the help of internet can be used by company. This willsupportthemin covering wide range of customersthatwill directly increase their revenue. towardsnewrooms. Company can monitor the feedback provided by customers and can alsoanalysetheir success by it. Travel-lodgeaimsat expanding their market share In order to achieve the objective, travel-lodge needs to implement a processthat specificallydefines theirvisionand mission.Theprocess should be such that by ittheorganisationis easily able to manage all their units like food &beverages,room division,human Tacticsthatcanbe usedbycompany includes for enhancing their growth they can improvetheproduct qualityofferedby them Like for example Travel-lodgecan provideproper infrastructureintheir rooms while launching them. Monitoringand evaluation can be done by observing if sales is increase by the process undertaken by them. 12
resourceandmany more. Also, they need tofocusontheir productmorelike roomservicesshould be appropriate. Travel-lodge goal is to achieve more profit In order to achieve this objectivecompany needstoheirpeople whicharequiet efficient.Also,they needtomarktheir physicalpresenceby collaboratingwith various online chains. Strategieswhichcan beusedbytravel- lodge to increase profit istheycanrecruit people who are highly skilled, well qualified andeducated.Also, they can mark physical evidencebymaking interiorattractiveof rooms Monitoringcanbe donebyasking consumerfor feedbacks or problems related to their services CONCLUSION From the above study, it has been summarised that Travel-lodge in order to achieve its objectives has made strategic marketing plan. It has helped company in expanding their market share and growing. Also, revenue of organisation has been enhanced by it. Linking of marketing functions with different functional units of hospitality industries has allowed company in attracting new consumers. 13
REFERENCES Books and Journals Pavlou, P.A. and Stewart, D.W., 2015. Interactive advertising: A new conceptual framework towards integrating elements of the marketing mix. InNew Meanings for Marketing in a New Millennium.(pp. 218-222). Springer, Cham. Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix: getting the balance right. InSocial Marketing(pp. 29-43). Psychology Press. Hanssens,D.M.andet.al.,2014.Consumerattitudemetricsforguidingmarketingmix decisions.Marketing Science.33(4). pp.534-550. Dzhandzhugazova, E. A. and et.al., 2016. Innovations in hospitality industry. International Journal of Environmental and Science Education. 11(17). pp.10387-10400. Khan,M.T.,2014.Theconceptof'marketingmix'anditselements(aconceptualreview paper).International journal of information, business and management.6(2).p.95. Koo, K.R., Kim, S.J. and Kim, K.H., 2016. The effects of internal marketing capability on export marketing strategy, B2B marketing mix and export performance.Journal of Global Scholars of Marketing Science.26(1).pp.51-65. Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix: getting the balance right. InSocial Marketing(pp. 29-43). Psychology Press. Online The Role of Marketing and Sales in Organizations and Its Impact on Performance.2013. [ONLINE] Available through: <http://www.msi.org/reports/the-role-of-marketing-and- sales-in-organizations-and-its-impact-on-performa/> MarketingPlan.2015.[ONLINE]Availablethrough: <https://www.syndicateroom.com/learn/glossary/marketing-plan> 14