Marketing Management: Analysis and Strategies for Motel 6
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Added on 2023/01/19
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This report provides a detailed analysis of the marketing strategies and activities of Motel 6, a leading accommodation services provider. It covers topics such as PESTLE analysis, SWOT analysis, current industry trends, competitor analysis, and more. The report also offers recommendations for improving marketing activities.
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Table of Contents INTRODUCTION...........................................................................................................................1 MAIN BODY...................................................................................................................................1 PESTLE ANALYSIS.............................................................................................................1 SWOT Analysis-....................................................................................................................2 Current trends of industry..................................................................................................3 Competitor analysis..............................................................................................................4 Porter Generic strategy........................................................................................................4 SMART objectives................................................................................................................4 STP analysis..........................................................................................................................5 Perpetual Map......................................................................................................................5 7 p’s........................................................................................................................................6 RECOMMENDATION.......................................................................................................7 Ansoff matrix........................................................................................................................8 CONCLUSION................................................................................................................................8 REFERENCES..............................................................................................................................10
INTRODUCTION Marketing is defined as philosophy that enterprise should analyze the needs and wants of customer and to make decision as per their requirements. Each enterprise must strive to satisfy the wants and needs while meeting enterprise goals (Cho, Fiore and Yu 2018). Thus, market is offering combination of services, idea, person, place etc. Additionally, it is function that involves of involving, implementation and to keep control over marketing programmed and campaigns. The main aim of marketing management is to bring improvement in product and service to satisfy the requirements of customers with help of reaching potential customers. The present report is based on business activities of Motel 6; it is enterprise that deals in accommodation services. Furthermore, assignment will cover activities as SWOT, PESTLE and current trends and competitor’s analysis of enterprise to run business activities effectively. Lastly, report will be based on recommendation to improve marketing activities. MAIN BODY PESTLE ANALYSIS It is defined as strategic analytical tool that stands for political, economic, social, technological, environmental and legal factors. Thus, the potential impact of these components can be analyzed and this defined in below defined manner as are- Political factor- Political stability termed out as basic necessities to gain success regardless of the industry. Therefore, political components influence the number of visitors, business travelers and tourist in direct and indirect mode (Chen and et.al.,2018). Therefore, the risk or threats of acts of terrorism are most likely to reduce the number of visitors to London and UK. However, this is the particular situation that has negatively affected the Motel 6 performance. Economic factors- The macroeconomic components such as inflation rate, savings rate, foreign exchange rate mainly determines the aggregate demand and investment in economy. On the other hand, Motel 6 worldwide holdings can have the use of firm economic factor such lodging industry growth rate, spending power of consumer etc. Social factor- The components as culture and way of doing the things affects the operation of the enterprise in the huge context. Thus, shared beliefs and attitude plays great role that how markets of Hotel Motel 6 understands the customers and their needs. However, demographic, income level of consumer, skill level of population impacts the working of the industry. 1
Technological factor- It is fast disrupting various industries around the world. Technological factor have great impact on performance of Hotel. Henceforth, hotel bookings have become very sophisticated. Thus, great technological advancement leads to have positive effect on the performance of hotel (Blakeman, 2018). Thus, enhancement in the number of social media such as Face book, Twitter and website life Trip advisor assist the customers to get connected with hotel. This kind of technology has helped the enterprise to conduct proper function within the enterprise. In order to expand business activities effectively, the enterprise needs to adapt technological advancement that leads to accomplish business objectives. Legal- These are those components that termed out as crucial source of external impact on performance of Hotel Motel 6. Thus, it is inclusive of changes in the Jurdiction of the UK, this has impact on catering industry of UK. Thus, the rules in relation to the visa restriction in many such as EU, Australia etc and this plays important role in travel and tourism. Environmental factor- Different market have differ norms that can impact the profitability of the enterpriseinthosemarkets(Hurtado,2018).Withintheenterprisetherearedifferent environment and liability laws. In order to earn profitability, the existing market must carefully evaluate standards of environment that are required to operate in those markets. SWOT Analysis- It is vital strategic planning tool that can aids to do the situational analysis of the organization. This, its defined in the following manner as are- Strength- The business enterprise has most extensive and vast scope of the business. It is the enterprise that has effective customer retention schemes. Highleveloftheservicecustomizationhasaccomplishedbythisindustryvia technological integration. This entity has strong property portfolio. Weakness- This is the enterprise that has huge level of the debts. The little global market share has the large portfolio of brands. Lack of the flexibility within market due to its large size. Opportunities 2
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This is the enterprise that has chance to have further international market expansion. It is entity that has formation of strategic alliance. This is the organization that focuses on research and developments, as this aids to enhance brand image in the market. It is the enterprise that has presence within the middle level budget hotel sector. Threats The rapid changes in technological advancement impacts the working of industry. There is high level of threats of terrorism and political instability within the market. Ethics relates issues within hotel Motel 6 impact the working of enterprise. The loss of key talent workforce and key personnel impacts the working of the industry in huge context. Current trends of industry It is competitive industry that is extremely competitive, this is crucial for hospitality industry to keep with the latest trends. Thus, these trends are defined in following manner as are- Sustainability- Customers are mainly concern with issues as environmental and wants to know that business is dealing in ethical behavior. Sustainability is one of the noticeable hospitality trends of current times with growing number of hospitality business and to promote the eco-friendliness. Artificial intelligence- It plays crucial role within hospitality industry but it plays effective role to bring improvement in customer service. There are some hospitality industries who have introduced AI and voice controlled customer service to assist customers. Robots- one of the most hospitality trends is emergence of Robots. It is define as machine that built to carry out the complex task either autonomously and semi autonomously. This is very effective technique that can aid to hospitality management in generating speed, accuracy improvement and cost. Current issues in Hospitality industry The one of the main issue is to constantly changing expectation of customers. Regular innovation and continual technological changes impact the industry as the loss of talent has become the key issue in growth of industry. 3
The one of the issue is relate with skilled labour shortage, staff turnover and irregular working hours impacts the working of the industry. Competitor analysis This is defined as marketing and strategic management defined as an assessment of the strength and weakness of current and potential market competitors. Thus, current competitor of the Motel 6 is Marriott, Holiday Inn etc. Porter Generic strategy There are approaches that can be applied to product and services in all industries and to the organization of the all sizes. Thus, it’s defined in following manner as are- Cost leadership strategy- It is defined as plan of action that aids to gain competitive advantage within the industry. However, developing the competitive edge can assist to Motel 6 to gain competitive advancement within market. Differentiationstrategy-Itisdefinedasplanofactionthatinvolvesinmaking commodities more attractive than to the competitors. However, the good research, developmentandinnovationplayscrucialroleinundertakingbusinessactivities effectivelyand efficiently.Thus, Motel 6 must use effectivesalesand marketing activities by understanding the benefits offered by the differentiates industries entity can enhance its brand image. The focus strategy- The firm should consider focus strategy to put concentrate on niche markets by understanding the dynamics of market with help of identifying customers unique needs. Thus, Motel 6 must use this method as this helps in building strong brand loyalty among customers. SMART objectives It is the goals and also called as objectives that can be adopted as team and used by individual employees, manager and entrepreneurs. Thus, its defined in following manner as are- S- The entity must set the goals to enhance the brand loyalty and customer retention by 50% in coming three years. M- The customer loyalty will be helpful to determine the about the objective in market. It is the stage that can aid to measure out that whether the goal is achievable or not. R- With help of adoption of technological advancement and skilled labour workforce the goal can be accomplished and it can provide realistic performance expectation. 4
T- The loyalty of gaining profitability and productivity must be gained within 3 years. STP analysis The model as segmentation, targeting and positioning is mainly for retaining the guest and this can widely used in hospitality industry. This is defined as model that is consist of three steps as are- Segmentation- It can be done in the manner as demographic, geographic, psychographic and behavioral etc. There are different markets that can be used by hotel to segment the target markets (James and Taylor, 2019). The Motel 6 is the hospitality company and this provides accommodation services at the worldwide level. Henceforth, this entity has use demographical segmentation as they segment market as per the gender, life style, social class and income of people. Target- In order to attend the high profitability, the Motel 6 must target adults and retired age people. Thus, lifestyle can attract to adults to travel and stay in leading hotels. On the other hand, retired ones usually prefer to travel to enjoy their leisure moment. With help of targeting this group, the entity can able to earn huge amount of the profitability. Positioning- In order to assist customer with excellent customer satisfaction, Motel 6 must linked with significant corporate traveller to promote the meeting rooms by offering group rates. With help of using this kind of advanced system, it can be possible to identify and market to guest to provide the highest return to the customers. Perpetual Map Perpetual map is chart defined by market researchers and businesses to depict and to understand about target customer view and to feel in terms to given brand or commodity. This will assist to Motel 6 to understand in terms to brand and commodity competitive positioning. Also, being one of the highest priced hotels little over 200 dollars per night. Therefore, Motel 6 Niagara falls is the highest quality out of five hotels. The one of the attractive point about this hotel is that it is situated besides the Niagara Falls and this is also one of the world biggest attractions. This hotel has beautiful waterfall or city views and also has fine dining view and customer can have night life here. It is the perfect place for any kind of the traveller. 5
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7 p’s The chain of Hotel and resort is popular among the world. This is chain of hotel service with combination of luxury and amenities. Therefore, Motel 6 marketing mix defined in following manner as are- Product- This is hospitality industry that provides the variety of hospitality services across the hotel chains. Therefore, Motel 6 Garden Inn, executive services like extended stay suits and vacations are part of the marketing mix product and service strategy. Additionally, the exotic food and drinks on the hotel menus are one of the best hospitality delights for the customers. It also provide their member exclusive membership discounts and other facilities like free Wi-Fi, room options etc. Hence, the services as hotel, event celebration, wedding and banquet facilities offer a gala experience to customers. Place- It is hotel that engaged in providing deluxe experience of providing luxurious service across the globe within 84 countries. This hotel is situated near the well surroundings and this adds unique experience to the customers. Additionally, the attractions as Beach sides, calmness around the place make it as desirable leading option of the people around the globe. Henceforth, international indulgence Motel 6 and resorts showers to customised needs of the population. Therefore, establishment is one of major vacation spots Motel 6 resorts are on spots near airports. Price- It is one of the leading enterprises that targeted the customers as exclusive segment of the society. Thus, the cost of different types of hotels by Motel 6 group serves for the specific purpose. With the advanced growth in international business within new emerging markets luxury service provider is expand their business in this country (Wallwork, 2018). Henceforth, price range changes with value added services as extra Wi-Fi, parking, exclusive service for guest and food etc. This is the hotel that has premium prices for the services as spa, restaurants, dynamism and breakfast etc. with help of adopting premium pricing strategy for the upscale services. It is the hotel that provides four and five star customer service with sense of stay. Promotion- It is also defined as hospitality industry that chooses to select the unique promotional activities that helps to stand out of the crowd. This is the entity that offers unique exclusive membership to people. Hence, well dedicated team and staff focus on marketing strategies to bring about the unique and new marketing indulgence. In order to attract the customer, hotel 6
Motel 6 uses promotional tools as print, media and television etc. It has given the strong feedback to the promotional strategies of hotel Motel 6. Physical evidence- Motel 6 group hotels and resort has great reach ad presence of its working properties around the globe. Henceforth, this is the entity that has tied up with many hotel bookings chains to enhance its reach and evidence in the market. Therefore, this si the enterprise that has variety of location and type of services, the Motel 6 carry a lot of weight in the market. Process- The system and processes of the Motel 6 group are considered as one of the best management chain in the world. Thus, the flow of the processes and service to the customer of this group is constant. Henceforth, this group has helped to minimize the operating cost. Thus, Motel 6 group has maximized its profitability with resulting from maintaining market leading position. People- The target and individuals can directly relate to this business. Therefore, hotel business at the worldwide level depends on the loyal customers and upcoming market customers. In order to maintain the loyalty and to have the large customer base the entity needs to overlook the services as running support desk, customer service and to organise different entertainment events and these are the string based of the Motel 6 success. RECOMMENDATION On the basis of above report, the suggestive measures must be taken to gain the profitability and productivity within the enterprise as are- The enterprise must use technological advancement that can help to provide effective assistance to customer in booking hotel and get quick services in ease mode. Therefore, technical advancement can attract the customer and this leads to gain profitability and productivity. It is the enterprise that should use regular innovation services. This can aids to customer to offer and build services effectively. Thus, innovation in the services leads to enhance the customer experience. Motel 6 manager should hire the skilled labour workforce who can provide better assistance to the customers. This is one of the effective methods to attract customer and to maintain and enhance enterprise sustainability. Thus, good workforce helps to build and enhance organisation profitability. 7
The enterprise must provide effective customer services with help of analysing their needs and wants of the customers. It can attract the wide range of customer and this leads to enhance the competitive advancement of the enterprise by enhancing customer retention. The entity should have the use of Artificial intelligence and smart service that can aids to attract the customer and this leads to enhance the market share of the enterprise by providing effective services to the customers. Entity must implement technological advancement that can bring fast and adaptable business servicesitcanalsohelpstoattractandgaincustomersatisfaction.Thus,technological advancement and effective services leads to enhance the customer loyalty and customer base. Ansoff matrix This is defined as strategic planning tool that offer frameworks to help executives, senior managers and marketers to device plan of action for the future growth. Market penetration- This is the strategy that provides the want to sell the existing product and services to more customers. With the use of this strategy, the customer can be attracted and brand image of the entity can also get enhanced. By providing the premium facilities the customer can also be enhanced and sustained for long duration. Market development- By help of entering into the new markets the diversification of firm aids to gain the customer loyalty (Andrén-Sandberg, 2018). With help of entering into the new market, the firm can able to attract new market segment and this can leads to enhance the profitability of the enterprise. Product and development- The enterprise should use technological advancement facilities as this aids to develop existing commodities within the market. With the use of effective modification in the product and service the brand image of the enterprise can also get enhanced and this can lead to enhance firm sustainability by attracting the new customer with their technological services. Diversification- With help of diversifying the markets with new product and services the entity can enhance their sales with existing customer base. With help o bringing diversification in business activities, the entity can perform their business activities in effective and efficient manner. CONCLUSION Based on the above aforementioned report it can be concluded that marketing strategy defined as to implement those activities that can aids to satisfy customer needs, enhance and 8
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maximise profitability and to beat competition. The present report is based on business activities of Hotel Motel 6. Furthermore, this report has covered internal and external marketing activities to analyse the market situation of the enterprise. Thus, this also has laid emphasize on activities as elements of marketing mix and Ansoff growth strategy to analyse the competitive strength of the enterprise. 9
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