Proposing a New Promotional Idea for Premier Inn Hotel

3. INDIVIDUAL REPORT

Table of Contents
1.
INTRODUCTION...........................................................................................................................3
1.1 Aim and Objectives...............................................................................................................3
1.2 Overview of Premier Inn Hotel.............................................................................................3
2. SERVICE ELEMENT AND TARGET MARKETS..................................................................4
2.1 Service Elements...................................................................................................................4
2.2 Target market.........................................................................................................................5
3. EVALUATION OF PROMOTION............................................................................................6
3.1 Promotion strategy.................................................................................................................6
3.2 Evaluation of promotional tools............................................................................................6
3.3 Suitability for target market...................................................................................................7
4.PROMOTIONAL IDEA...............................................................................................................7
4.1 Outline of Proposed promotional idea...................................................................................7
4.2. Alignment with values of the organization...........................................................................8
4.3. Alignment with marketing communication mix...................................................................8
4.4 Alignment with target market................................................................................................9
5. CONCLUSION..........................................................................................................................10
6. RECOMMENDATIONS...........................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
1.1 Aim and Objectives
Aim:
 The aim of the current report is to propose a new promotional idea to Premier Inn. Hotel
of UK.
Objectives:
 Specific: To increase the sales revenue of the organization by 20% with the proposal of
new promotional idea.
 Measurable: To increase the customer retention rate by 15% and reduce overhead cost
by 10% this financial year.
 Achievable: To properly allocate human and finance resources within the organization to
achieve these targets.
 Relevant: To engage Premier Inn in social media marketing contest and giveaways to
increase customer satisfaction and loyalty.
 Time-Bound: To increase the profitability of Premier Inn by 12% within the next one
year.
1.2 Overview of Premier Inn Hotel
Premier Inn is a British limited service hotel chain operates in the hospitality industry and
is one of the UK’s largest hotel brand. The organization was founded in the year 1987 and have
headquarter in Dunstable, England, UK. Premier Inn organization have more than 800 hotels in
UK with more than 72000 rooms which indicate that the demand of this hotel brand is always on
peak in the UK. The various location where the company have its operation or hotel is United
Kingdom, Ireland, United Arab Emirates, Qatar and Germany. Also, Premier Inn operates its
hotel in a variety of locations of UK such as city centres, suburbs and airports. Premier Inn is
basically a subsidiary of Whitbread Plc as in the year 2004, Whitbread organization has acquired
Premier Lodge for the value of £536 million and merged the business under the name “Premier
Travel Inn” which was further shortened to Premier Inn in the year 2007 (Othman and et.al.,
2019). The hotel was one of the major budget hotel chain that invest their money in the television
advertising in order to promote its service to the ultimate target market.

The organization has also launch a television marketing campaign to spread the
information about its merger with Whitbread plc in the year 2007 where the popular comedian
Lenny Henry has become the face of that campaign and every television advertisement. The total
UK revenue of Premier Inn as per the report of year 2020/21 is £577.4 million with an adjusting
operating loss of £415.7 million in the same year. It is because of the Covid-19 and pandemic
situation where all the performance of hospitality, travel sectors are highly affected in negative
way. On the other hand, the direct booking from the online platform has enhance to 99% from
97% in the year 2020/21 as compared to previous year.
SERVICE ELEMENT AND TARGET MARKETS
2.1 Service Elements
The eight element of service marketing which is understand and used by Premier Inn to
successfully market its service business in the local as well as international market are as
follows:
Service and Place: This is the first element of service marketing which state the service
provided by business and who are the target market of organization. For example, the common
hotel services offer by Premier Inn to their customers are staying in a hotel room, meals, clothing
& footwear repairing, dry cleaner, currency exchange, sale of souvenirs and recreational
services. The target customer of Premier Inn hotel is all age group people such as families, solo
travellers, couples, free independent traveller etc. Also, the business travellers, adventures,
retirees etc. are also the target market of Premier Inn hotel. The place where Premier Inn
promotes its services is television, social media platform as well as own websites in order to
enhance revenue opportunity (Jain and Jain, 2021).
The Right people: This element indicate the workforce of service business that
contributes to business success. For example, in the year 2021 the total number of employee of
Premier Inn is around 48000. In order to keep the existing employee motivated and attracting
new talent, the HR of Premier Inn uses talent management strategies such as training, rewards,
policies, law etc.
Knowledge in Service Marketing: This the another element of service marketing which
state that service firms should have knowledge of service marketing. For example, Premier Inn
hotel hire marketing consultation on the basis of their knowledge of marketing tools in order to