Marketing Essentials: British hotel

MARKETING ESSENTIALS

CONTENTS
INTRODUCTION.................................................................................................................................1
TASK – 1 (LO – 1)................................................................................................................................1
P1 Key roles and responsibilities of the marketing function..............................................................1
P2 Inter-relationship between the roles and responsibilities of marketing to the wider organizational
context...............................................................................................................................................3
TASK – 2 (LO – 2)................................................................................................................................4
P3 Comparison of the ways in which different organizations apply marketing mix to the marketing
planning process................................................................................................................................4
TASK – 3 (LO – 3)................................................................................................................................7
P4 Evaluating a basic marketing plan for Premier Inn.......................................................................7
CONCLUSION...................................................................................................................................13
REFERENCES....................................................................................................................................14

INTRODUCTION
Marketing is being referred as one of the social as well as managerial process through
which people get the things they desire by way of developing and exchanging products with
others. Thus, marketing is nothing but the management of exchange relationship. Business
corporations are now comprehending that marketing is very crucial in their overall success
and consequently, they are understanding the functions of marketing in detail. Further, it is
essential for the marketing managers to determine the needs of the customers and should
make their major decisions based on the identified needs (Coultry, 2008). The present
research report also aims to offer the background knowledge as well as comprehension of
marketing, its role and importance in which the firms operates. As an assistant marketing
manager, a detailed marketing analysis of Premier Inn will be carried out in the report. It is a
British hotel chain and one of the largest hotel brand in United Kingdom. Further, roles and
responsibilities of the marketing, marketing mix, marketing planning and marketing plan will
be discussed thoroughly in the current study.
TASK – 1 (LO – 1)
P1 Key roles and responsibilities of the marketing function
In today’s market place, marketing is being referred is being referred as the process
through which companies create value for the customers and at the same time develops good
relationship so as to capture value from them in return (Kotler and Armstrong, 2013). Thus, a
marketing process is simply understanding the needs, demands and wants of the customers
and according to the determined needs designing a customer driven marketing strategy. In
addition to this, modern marketing also involves creating an integrated marketing program
which helps in delivering superior values to the customers. If the marketers sells the right
level of expectations to people than the customers will receive value and they will be
satisfied. Consequently, it can be said that market is the set of actual as well as potential
buyers of the product and they need to be satisfied for achieving success. So, altogether
marketing is creating value for the customers by comprehending their needs, designing
effective strategies, developing proper marketing mix, building relationship and capturing the
customer value for lifetime. However, business should ensure ethical as well as social
responsibility. The model below clearly explains the above defined expanded role of
marketing.
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Figure 1: An Expanded model of marketing
(Branig, 2018).
Premier Inn is a service firm that significantly delivers essential food and beverages
and accommodation to its guests. The objective of the hotel is to expand their market reach
and anticipate growth. Marketing plays an important role for the hotel as through this they
promote their brand in the market and create a brand image among its target market (Premier
Inn ‘world’s strongest hotel brand’, 2017). Pertaining to this, the major roles and
responsibilities of the marketing function within the Premier Inn hotel are as follows:
 Market analysis – It involves studying the customers, products of the competitors,
preferences and taste of the target market, demand and supply of the product etc. This
helps the firm in estimating about the type and amount of goods to be produced.
 Strategic planning development – This is also one of the most vital function of
marketing. It involves developing strategies, plans and setting goals that helps in
directing the employees to achieve the marketing goals.
 Pricing function – This is defined as the function under which the hotel decides the
amount to be charged from each and every customers for its products and services.
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Thus, it is the responsibility of the manager to set such prices that customers can see it
as fair. In other sense, not too high and low; however the firm should make a
reasonable profit out of that (Doole and et.al, 2016). There are certain things that
should be considered at the time of setting the prices such as the readiness of the
customers to pay the prices, cost of production to the firm, prices of the same services
and products charged by the competitors and many more.
 Distribution – Distribution function is the process which makes sure that the products
and services are effectively and smoothly progressed from the point of production to
the ultimate users. Hence, it can be said that it is a process that ensure that the
merchandise are in the hands of the customers. The main role and responsibilities of
this function is to consider the type of transportation system to be employed such as
road, rails air and water (Guido and et.al, 2011). Further, it also encompasses tracking
of the products. Furthermore, middleman to be engaged in the channel of distribution
is also decided by this function. Their motivations, incentives and other needs should
be determined effectively.
 Promotion – It is very much essential for the Premier Inn hotel to advertise their
products and services in order to attract large number of people. This will also help
them in keeping their existing customers coming back. With the change in the market
place, the marketing manager of the hotel is required to respond suitably through
tailoring the promotion messages of the firm to new media like Facebook and Twitter.
He is required to stick with more conventional outlets and must make use of right mix
of old and new methods (Nash, Thyne and Davies, 2006).
 Market information – This is also another important function of marketing. Here, the
marketing manager of the hotel is responsible for determining the needs and wants of
the customers and make decisions based on that for successful marketing of the
hotel’s products. Further, he is also responsible for judging the internal strength and
weakness of Premier Inn, which can be used in segmenting the market (Premier Inn
‘world’s strongest hotel brand’, 2017).
 Management of products and services – After determining the target market and
setting the prices, the main responsibility of the manager is to manage the products
and services effectively. It encompasses paying attention to the customers and
retorting to their demands.
 Selling – Marketing and selling is very closely linked and selling is the last functions
of marketing. It takes place only after the needs and wants of the customers are
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identified and the firm is now in a position to retort the right products at the right
price and time (Nash, Thyne and Davies, 2006).
P2 Inter-relationship between the roles and responsibilities of marketing to the wider
organizational context
Marketing in B2B and B2C context
In case of the wider organizational context of Premier Inn, marketing has different
roles as well as responsibilities. Some of them are being described underneath:
 Listening to the needs of the customers – For establishing marketing strategy, it is
vital to remain close to the customers and listen to their demands. In this regards, the
marketing department of the hotel creates surveys and actions in social networks for
capturing information (Rogers and Foster, 2008).
 Coordinating efforts with the marketing partners – There are many contributors
around Premier Inn’s business such as designers, publishers, journalists and
consultant. Objectives of the hotel and work of all these contributors must be aligned
effectively.
 Innovation – Each and every day, customers should be given high offer by the hotel
and thus, Premier Inn need to put efforts on new promotions, improvements, customer
retention techniques and affiliate programs (How Premier Inn proved the value of
services? 2018).
 Improving the sales process – It is the key responsibility of the marketing department
of Premier Inn hotel to understand the customers and their feelings. In this regards,
each and every department which have direct contact with the customers should work
with the empathy maps.
Inter-relationship between the roles and responsibilities of marketing
Premier Inn Hotel has different functional departments such as manufacturing,
customer services, finance, research and development, operations, human resource etc. All
these units of the hotel have vital relationship with marketing. Explanation is being defined
underneath:
Marketing and finance department
Talking in relation with the finance department, this unit is responsible for creating a
report of costs, profit and loss of the hotel. Seeking help from this unit, the marketing
manager can set the objectives as well as targets of the hotel for the coming year (Premier
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Inn’s ‘consistent brand evolution’ spurs revenue, 2014). Additionally, when marketing
department takes decisions in regards with the prices of the products and related policies than
the finance department also establishes credit policies for various categories of customers.
Marketing and production department
Similarly, marketing also has enormous influence on the production department of the
firm. It is the marketing department that sets the target for the hotel and as per that target
production, amount of food to be prepared, units to be prepared is determined and staff
members increases their capabilities accordingly.
Marketing and research & development department
Another example which shows the inter-relationship of different functional units with
marketing is the research and development department. This department of Premier Inn offers
different research papers to the marketing department so that the manager can develop
strategies for their new product development and achieve a competitive edge in the market
(Ruetz and Marvel, 2011).
Consequently, it can be said that all the functional departments of Premier Inn Hotel
are inter-related. Based on the reports as well as data being offered by the other functional
departments, the marketing unit of the hotel develops their plans and strategies for new
product development. In addition to this, marketing unit also sets targets for the
manufacturing department. However, customer services has very little influence on the
marketing function of the Premier Inn as the function of these two units is quite dissimilar
(Johnson and Whittington, 2008).
TASK – 2 (LO – 2)
P3 Comparison of the ways in which different organizations apply marketing mix to the
marketing planning process
Throwing light in relation with the marketing mix, it is being defined as the concept
that is quite crucial for achieving success and growth for the firm. No company can operate
without profit and it can be earned only through application of suitable marketing strategies
as well as processes. In this regards, one important tool is marketing mix. It is that thought in
which appropriate product is served at right time and place with a view to approach to the
market easily. It also leads to increase in the sales as well as profits of the hotel (Premier
Inn’s ‘consistent brand evolution’ spurs revenue, 2014). There are generally four parameters
in marketing mix i.e. product, price, place and promotion. However, with the altering nature
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of the business and its present conditions, there has been extension in the features like people,
physical evidence and processes. Here in this report study, a comparison of the seven P’s in
accordance with the two hotel groups will be done (Kotler and Armstrong, 2013). One firm is
Premier Inn, which is the one of the largest hotel chain in UK and the other is Holiday Inn,
which is a British owned American hotel groups and the subsidiary of InterContinental Hotel
Groups (IHG) (Khan, 2014). The comparison of the marketing mix of two hotels is presented
underneath:
Marketing mix
elements
Premier Inn Holiday Inn
Product
It forms the basic essential
element for the success of
marketing. Premier Inn offers
different features in their hotels
like suite rooms, free cot for
hire, double beds, TV desk area
etc. Specialty rooms for family
at discounted price is also
offered by the hotel (Premier
Inn, 2018).
The product of the hotel falls under
the luxury segment. Rooms of
Holiday Inn are very specious and
large. They are equipped with
modern facilities such as hair dryer,
TV, refrigerator, private bar, air-
conditioner, Wi-Fi, luscious rugs
etc. Other than this, the hotel also
offer number of services such as
swimming pool, butler services,
meetings and conference rooms,
party halls, restaurants and bars.
Price
The pricing factor of the hotel
directly influence the choice of
the customers. The prices being
set by the hotel is according to
their customers. Because of the
rising level of competition in the
market, the prices are set with
low margin on profits to increase
the overall sales of the firm.
The hotel charges prices according
to the amenities being offered by
them to guests. Further, Holiday Inn
takes into consideration competitive
based pricing system because of the
number of competitors available in
the hotel industry. Though there
prices are quite higher than their
rivalries as they offer more features
(Lee and et.al, 2016)
It is where the products are
being sold to the customers.
Place element refers to the process
of moving products from the
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Place Premium Inn has its operations
in many parts of the world
(Premier Inn ‘world’s strongest
hotel brand’, 2017). They have
their websites as well from
which they are getting frequent
traffic.
manufacturer to the ultimate users.
In other sense, it can be said that the
ways products of the firm are
brought and the place where it has
been brought. It helps in increasing
the sales of the company if right
place is being used. Hotels of the
Holiday Inn are located at the prime
locations with lush green
environment. They have around
1173 hotels in almost every part of
the world.
Promotion
Various advertisements means
are being used by the hotel for
promoting their products and
services such as sponsoring and
event, using electronic means,
social media like Facebook,
Twitter etc.
Holiday Inn hotel makes use of
multiple media channels for
promoting their products and
services such as television, radio,
social media platforms such as
Facebook, Twitter, and Instagram.
Sales promotion by taking part in
exhibitions is also used by the hotel.
Physical
evidence
It is the area where the products
are being sold to the customers.
The hotel focuses on proper
execution of its services. The
interiors of their hotels are in art
deco style. Various statues and
monuments are used in the
interiors of the hotel (Whitbread
PLC, 2011). Colours and
designs are chosen that soothes
the customer. They also offer
candle light dinner where they
make use of dim lights and
Physical evidence forms a vital part
when it comes to service deliver and
service marketing. The properties of
the hotel are good built with lush
green environments. The interior
and exterior of the hotels are
designed using modern style of
architecture. They have a hotel
lobby, nice music, luxurious
restaurant and before and after sales
services (Brassington and Pettitt,
2012).
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instrumental music.
People
People are one of the most vital
element for any hotel as they
finally delivers the services to
guests. Premier Inn pays
attention towards their
employees and offers them
healthy working environment.
They are given training on
persuasive techniques. All
generation of people are
employed in this hotel and are
skilful.
The sales team of the Holiday Inn
plays a crucial role in the marketing
of its products and services. different
workforce are appointed for
managing the day to day operations
within the hotel such as waiters, bar
tenders, house keepers, receptionists,
bell boys, managers, clearness,
chefs, helpers etc. All are skilful and
well-trained (Holiday Inn, 2018).
Process
Processes are very vital for the
service industry. Premier Inn
will not be able to achieve
success without having right
processes in place (Premier Inn
‘world’s strongest hotel brand’,
2017). Some of the processes in
the hotel includes guest booking,
check-in, check-out, payment,
consuming services, stay in hotel
etc.
It is being referred as the process
through which services are being
delivered to the customers. Holiday
Inn have a systematic process of
checking an inventory level, check-
in and check-out process, and guest
booking and payment methods. It is
a process oriented hotel chain which
is having processes for every small
and insignificant activities like
changing flowers etc.
TASK – 3 (LO – 3)
P4 Evaluating a basic marketing plan for Premier Inn
Situation analysis
PESTEL analysis
Political
 Positive as well as pragmatic collaboration with the government of
UK
 Government sets objectives for recapturing the position of tourism in
United Kingdom
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 Regional growth fund of hospitality industry
Economical
 Growth in the supply and market volume (Premier Inn,2018)
 Current downturn in the economy might affect the hospitality industry
 Reduction in the rate of interest by the government
Social
 Changing life style and living standards will impact Premier Inn
 High value for money
 People in UK prefer strong branded products
Technological
 Utilization of latest development IT tool will lead the hospitality
industry towards success (Brassington and Pettitt, 2012)
 Communication is changing to web based techniques
Environmental
 People in UK are more vigilant and about the environment
 support to the firms who helps in reducing the pollution and adopts
proper waste disposal system (Nijssen and Frambach, 2013)
 Premier Inn need to focus on CSR activities
Legal
 UK government has increased the minimum wage rate by 15.5 percent
 Minimum standards and legal procedures stipulated by the
government should be followed
Porter’s five force
Bargaining power of the
buyers
Bargaining power of the customers is high because the hotel
industry falls under service industry. If the comfort of the
guests will be highly prioritized and standardised services are
being offered to them than they will not switch to other
brands.
Bargaining power of the
suppliers
The bargaining power of the suppliers is not too high. There
is a need of strong linkage as well as support for maintaining
good bargaining power with the suppliers (Bettis, 2011)
Competitive rivalry
Hotel industry is highly competitive in nature. Because of
high level of competition, price margin is also very low.
Maintaining quality and service is being regarded as one of
the major threat pertaining to the rising level of competition.
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Threats from substitutes
Further, the threat from the entry of substitute products is also
very high. However, by offering customers satisfaction and
comfort to the customers, room for substitution can be
lowered down (Morrison, 2013).
Threats from new entrants
Threat from the new entrants is quite high as this sector is
growing very rapidly and even the government of UK is also
facilitating this sector. However, the entry barriers are also
high because of maintaining and supplying quality to the
customers.
SWOT analysis
Strength
 Strong networking with the
stakeholders
 Largest and fastest growing brand of
UK
 High values for money
Weakness
 Limited international expansion of
business
 Low promotional as well as marketing
campaigns (McDonald, 2013)
 There is low level of value addition to
the products and services
Opportunities
 Premier Inn can expand its operations
in emerging economies such as Middle
East (Kim and Oh, 2004)
 Adopting franchising opportunities of
business in order to expand
 Introduction of customized business
products for professionals
Threats
 Increasing costs of operation
 High level of competition in the market
 Global crises as well as economic
downturn
Marketing objectives
 To maintain the brand value of the hotel
 Increasing the market share by 10 percent every year
 To focus on individual customers along with the business segments
 Increasing the sales of the hotel by 20 percent in a year
 To maintain its market value for better growth and success of the hotel
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Marketing strategies
Segmentation
There are numerous kinds of criteria for segmentation through which the firm can
segment their customers. Segmentation of Premier Inn are as follows:
 Geographic – In this segmentation, the market is divided based on nations, cities,
regions, Premier Inn makes use of this segmentation as they have their operations in
many parts of the world (Hawkes, 2013).
 Demographic – It includes age, income, gender, sex, education and religion. Premier
Inn is segmenting the market based on the income level and those who need budget
accommodation in good quality. They are also segmenting the market based on the
occupation like businesses etc.
 Psychographic – It encompasses lifestyle, social class, values and personality (). The
segmenting base of the hotel under this criteria is based on the social class such as
economical, business etc.
Targeting
It is being referred as the second stage of the STP process. After selecting the segment
of the market, it is vital to select the market to be targeted. Further, the potential customers
are being selected at this stage to whom a hotel desire to sell its products and services. It is
vital for Premier Inn to decide about the segments to be targeted (Ingram, 2016). The
decision should be undertaken by considering their appropriateness. The target market of the
Premier Inn are the travellers and backpackers.
Positioning
Positioning is the last step in the whole process of STP. It involves identifying the
ways of positioning a business or a product into the market with a view to target the most
valuable segment of the customers. Talking in relation with the Premier Inn, the hotel want to
position itself in the market as one of the best budget hotel of United Kingdom (Bayne,
2012).
Action plan
For any business organization, profitability can be increased by applying effective
marketing tactics and particularly a good marketing mix. It has been seen from the above
analysis that there is too much competition in the hospitality industry of UK. Further, there is
limited scope of any firm to enter in this market (Mcdonald and Wilson, 2011).
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Consequently, for maintaining sustainability as well as competitive edge in the market, it is
vital for the firm to execute effective marketing mix. According to Bayne, operative and
successful marketing mix can be developed through careful observation of the behaviour of
the customers. Further, Budget need to be allocated to each marketing mix for effective
functioning.
 Product – Premier Inn offers different features in their hotels like suite rooms, free cot
for hire, double beds, and TV desk area. Further, high quality facilities will be offered
and it will be differentiated from competition quality (Groucutt and Hopkins, 2015).
 Promotion – The main emphasis in terms of promoting the products and services will
be given on mass communication by Premier Inn. They will make use of print ads in
trade publications as well as on internet. They will also focus on personal selling in
the local market and public relation activities by participating in some local events.
The total advertising, PR and direct marketing budget of the hotel is £33000, £6000,
£13000 respectively (Borden, 2011).
 Price – The pricing policy of Premier Inn is to offer added value to the customers at
affordable rates. The prices of the rooms per night will be: Corporate single will be
priced £95.00, double - £125.00, double deluxe - £175.00 and suite - £225.00.
 Place or distribution – Information about the products as well as services will be sold
to the customers through direct marketing, advertising, personal selling as well as
internet. The delivery channels of the hotels will significantly encompass international
reservation system and travel agents (Cohen, 2013).
Implementation schedule for marketing
Advertising Start date End date Budget
Print ad 1/8/2020 10/8/2019 £33000
Public relation
(sponsorship events)
4/8/2019 6/8/2019 £6000
Direct marketing 3/8/2019 3/8/2019 £13000
Total £52000
Forecasts
Sales forecast
Product Unit Sales 2019 Unit prices Sales
Corporate single 1900 £95.00 £180500
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Double 3600 £125.00 £450000
Double Deluxe 2600 £175.00 £455000
Suite 300 £225.00 £67500
Total Sales £1153000
Expense forecast
Expenses Amount
Print advertising £33000
Fixed expenses £18000
Internet advertising £4000
Public relation £6000
Direct marketing £13000
Total expense £74000
Direct cost of sales
Product Cost of sales
Corporate single £15000
Double £51000
Double Deluxe £47000
Suite £200
Total direct cost of sales £113200
Profits forecast
Financial year 2019
Sales £1153000
Direct cost of sales £113200
Other cost of sales £0
Total cost of sales £113200
Gross margin £1039800
Gross margin % 90.18%
Marketing expense
Total £74000
Percent of sales 5.00%
Contribution margin £965800
Contribution margin/Sales 83.76%
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Marketing control
The marketing plan of the Premier Inn is being structured to allow the hotel to
accomplish its strategic goals being set by them in relation with increasing the overall profits
of the concern because of differentiating the products and services from the rivalries in the
market. After the execution of the marketing plan, it will be scrutinized as well as checked
regularly in order to make sure that no default arise in any aspects (Jobber and Chadwick,
2012). Controlling is essential for the purpose of avoiding flaws that might cost a fortune to
the hotel. Efficiency and accuracy should be maintained at the highest levels at the time when
the marketing plan is executed by the marketing team. All projections will be monitored
regularly with the actuals so that corrective actions can be taken easily if any manipulation is
noticed. Further, the annual results will be assessed at the regional manager’s meeting (Kotler
and Armstrong, 2013).
CONCLUSION
From the above discussion, it can be said that the report is all about the aspects of
marketing and is principles which are being utilized in each and every firm for its better.
Because of such management techniques, problems and challenges coming across the
business in future can be mitigated. In this report study, analysis of Premier Inn is being
done. It was explored that the hotel has utilized good method however, some alterations
needs to be done in their marketing mix to achieve greater heights. Furthermore, a marketing
plan is also being formulated in order to have the desired outcomes for the hotel. Thus, if
Premier Inn will consider this marketing plan than it is more likely that the firm will
definitely going to achieve growth and success.
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