Impact of Covid19 on Travelodge and the 'Enabling a leading Brand' Marketing Campaign
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This report analyzes the impact of Covid19 on Travelodge and the effectiveness of their 'Enabling a leading Brand' marketing campaign. It includes a TOWS analysis, marketing objectives, marketing mix plan, and recommendations for improving customer service.
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Abstract Main purpose of preparing this report is to identify the impact of Covid19 over Travelodge. Due to corona virus, different issues faced by hotel like heavy loss in earning, reduced number of customers and many others. In order to deal with these issues company launched an effective campaign known “Enabling a leading Brand”. This campaign helped them in attraction of large number of customers and also increment of business sales by increasing awareness about the brand among customers or in marketplace. Along with this, marketing plan was prepared by company that includes different elements such as TOWS analysis, marketing mix, marketing objectives etc. These are effective for hotel in enhancement of brand image and attainment of competitive advantages easily. Along with this, some recommendations were provided to the company about how to improve customer’s service level through “Enabling a leading Brand” campaign. 2
Contents Abstract............................................................................................................................................2 INTRODUCTION...........................................................................................................................4 1. Marketing TOWS for Travelodge that simultaneously explains the marketing audits...........4 2. Determination and justification of the three marketing objectives..........................................7 3. Outlining the marketing mix plan that aid in achievement of set objectives...........................7 4. Ways that can be use by Travelodge for improving their level of customers as a part of their “Enabling a leading brand” Marketing campaign.......................................................................9 CONCLUSION..............................................................................................................................11 Recommendation...........................................................................................................................11 REFERENCES..............................................................................................................................12 3
INTRODUCTION Marketing introduces to the set of institutions, activity and systematic process for developing, communicating, producing and exchanging offerings that van value for customers, partners, clients and society at large(Gottfried and et. al., 2018). In addition, it is an essential activity an organisation used to promote the selling or buying of a service or product. Marketing includes advertising, promotion, selling and delivering of products to customers or other business. For this report, Travelodge is a given private organisation that operating their business within the hotels and hospitality sector throughout the United Kingdom, Spain and Ireland. This hotel was founded in 1985 by Keith Hamill and Peter Goweres (Kowalik and Klimecka-Tatar, 2017). Hotel faced some issues or challenges due to crisis of corona virus such as reduced sales, heavy loss of earning, inability to pay salary to worker, reduced large number of customers etc. In order to overcome this issue, Travelodge wants to establish itself as the leading brand within the budget hotel market with a marketing Campaign known “Enabling a leading Brand”. In order to fulfil purpose of establishing the “Enabling a leading Brand” or overcoming the challenges associated with corona virus, marketing plan will be produce by marketing experts that cover different models or aspects such as TOWS analysis, marketing objectives, Marketing mix plan and proposal to the business in improvement of customer service effectively. 1. Marketing TOWS for Travelodge that simultaneously explains the marketing audits TOWS Analysis is a variation of the exemplary business device, SWOT Analysis. TOWS and SWOT are abbreviations for various courses of action of the words Strengths, Weaknesses, Opportunities and Threats. By breaking down the external conditions (threat and opportunities), and an organisational internal condition (weaknesses and strengths), management can utilize these strategies to consider the procedure of your entire association, an office or a group. Management can likewise utilize them to consider a procedure, a promoting effort, or even improving own abilities and experience. LikeaSWOT,aTOWSinvestigationwillincludetherecognizableproofofan association's strengths, weaknesses, opportunities and threats; be that as it may, regularly a key analysis of a SWOT examination is that it doesn't show the connections between the various components and classifications. For instance, a specific danger may make a shortcoming considerably more noteworthy. Though a TOWS examination will hope to coordinate inward 4
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factors to outside elements to help distinguish important vital alternatives that an association could seek after. It can assist an association with seeing how it can make the most of chances, diminish threats, beat weaknesses and exploit any strengths. A TOWS is a generally utilized key arranging instrument and can increase the value of an association, assisting with making vital arranging one stride further. A TOWS investigation empowers an association to coordinate its inner qualities, and outer chances (SO) to create 'maxi-maxi' methodologies those have the best potential for progress (An introduction to TOWS Analysis,2020). At the other extraordinary, it features the association's powerlessness to dangers dependent on its shortcomings and encourages the improvement of systems that limit these and evade dangers (WT). This further known as 'mini-mini' techniques. In the middle of, mini-maxi (WO) and maxi-mini methodologies (ST) are intended to fortify shortcomings, using openings, and limit dangers using qualities (ABOUD and ŞAHİNLİ, 2019). It's imperative to recall that a TOWS investigation won't highlight which explicit system to receive, yet it focuses consideration the zones where activity is required, and given some sign of the idea of that activity. Currently,thisisimportantforthemanagementofTravelodgetouseTWOSfor understanding the relation between the internal and external factors along with selection of areas which requires more work along with those that delivers large number of opportunities (Crnčan and et. al., 2017). The detailed application of TOWS in relation to Travelodge is presented below: External Opportunities (O) Capturemarket through focusing over budget operations Improving the level of sanitisation and health safety standards External Threats (T) Spread of Covid-19 Large competition in market Internal Strengths (S) Having good presence inmarketatglobal SO Good level of finance help to grab the opportunity regarding ST Goodleveloffinanceand brandimageprovidethe 5
level Good brand image in market Havingeffective financialsourcesto boost market through innovative offerings operation at budget level along withmaintainingeffective sanitisation. opportunitytocombatthe threatofCovid-19spread alongwithlargelevelof competition in market Internal Weaknesses (W) Lack in health safety measures according to currentnatureof environment Lackofstaff experienceinsafety of dealings WO Improved level of sanitisation helptoremovethecurrent weakness about health safety along with aid in providence ofexperiencetostaff regarding future dealings WT Spread of Covid-19 threatens the organisation as currently theyweakinhealthsafety alongwithhavingless experiencedstafftowards performing such dealings SO: It is ascertained from this quadrant that organisation has effective level of strengths to effectively grab the possible opportunities (Chaffey, 2019). The significant amount of finance along sources provides the opportunity to operate the business budget level. Also, help in improving the current level of health safety standards along with activities of sanitisation so the consumers will feel safe and satisfied from the arrangements done from the organisational side. ST: It is determined from the information presented under this quadrant that organisation has effective amount of strength through which they able to combat the all possible threats. The brand image and financial source help the organisation to effectively deal with both the aspects i.e. contamination of Covid-19 and amount of large competition in market (Armstrong and et. al., 2018). This exercise will be beneficial for an organisation in future where easy for them to grab the market share of other competitor organisations too. WO: It is ascertained from the information under this quadrant that there are possible number of opportunities exist in market through which an organisation easily covers their 6
weaknesses.Theimprovedlevelofsanitisationandhealthsafetystandardsprovidesan opportunity to an organisation that improve their current level of safety programmes and focus over prevent of Covid-19 contamination in their premises. WT: It is determined from the information present in this quadrant there is huge need for an organisation to work over these activities for the purpose of ascertaining success in market. Here, the threat of Covid-19 explores the weakness of an organisation about the low level of health safety standards along with less experience staff members for dealing with similar kind of situation. This depicts that there is huge need for an organisation to improve their health aspects through which they able to prevent the contamination of Covid-19. 2. Determination and justification of the three marketing objectives Determination of the marketing objective is important exercise in successful development of the marketing plan. This help in outlining of the strategies which are important in achieving the same (Patti and et. al., 2017). It further aids in development of the implementation outlining in respect to strategies for attaining desired outcomes. In accordance to the current scenario, the objectives which are must for Travelodge to grab in respect to attaining success within the market are defined below; To improve business by 20% through providence of budget operations from the date of continuing business after lockdown. To improve brand image by 30% through focusing over sanitisation activities from the date of continuing business after lockdown. To provide training to staff regarding reduction of Covid-19 contamination among consumers and other staff members to reduce the impact of competition by 10% within 1 month of operating business activities. It is important for the management of Travelodge to focus over above mentioned all objectives regarding attainment of the success in market (Hollensen, 2019). This will provide the opportunity to effectively operate in market where easy for an organisation to continuing the operations by maintaining effective level of brand image. 3. Outlining the marketing mix plan that aid in achievement of set objectives Themarketingmixalludestothearrangementofactivities,orstrategies,thatan organization uses to advance its image or item in the market. The 4Ps make up a commonplace advertising blend - Price, Product, Promotion and Place. Be that as it may, these days, the 7
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advertising blend progressively incorporates a few different Ps like Packaging, Positioning, People and even Politics as imperative blend components. The marketing mix definition is straightforward. It is tied in with putting the correct item or a mix thereof in the spot, at the ideal time, and at the correct cost. The troublesome part is doing this well, as you have to know each part of your field-tested strategy. Further, the Marketing mix has been characterized as the "arrangement of advertising instruments that the firm uses to seek after its showcasing goals in the objective market". In this way the marketing mix alludes to four wide degrees of showcasing choice: product, price, place, and promotion. Marketing practice has been happening for centuries, yet promoting hypothesis developed in the mid twentieth century (Wood and Jobber, 2016). The contemporary marketing mix, or the 4 Ps, which has become the prevailing system for showcasing the board choices, was first distributed in1960. Inadministrationspromoting,anall-encompassingadvertisingblendisutilized, ordinarily including 7 Ps, comprised of the first 4 Ps stretched out by process, people, and physical evidence. Once in a while administration marketer will allude to 8 Ps, containing these 7 Ps in addition to execution. Product –Travelodge is the United Kingdom’s largest hotel brand and therefore, it is important for the company to revise its product portfolio once the lockdown is over. It should first understand which of its products or services bring in the most revenue. Since the company operates a large number of hotels and has a large base of loyal customers, it is important for it to adopt the different necessary sanitization methods. All the rooms in different hotels as well as other areas within the property should be sanitized once the lockdown is over. Apart from this, it is also important to provide training to all of its employees in the different departments regarding importance of sanitisation and how to use different technologies related to it. Price –Travelodge has maintained its position of being the largest and being widely recognized among customers (Kotler and et. al., 2017). In regards to pricing strategy, the company offers services that are moderate as well as expensive. And especially after the lockdown, because the company will have to incorporate various measures and technologies relating to sanitization, the prices of the products will increase. Other factors that can affect the pricing strategy of the company can include competition, demand, the number of people who are willing to travel after the lockdown, location where the hotels are situated as well as the number 8
of people who are affected by Covid-19 in those areas. The budget of the company will also significantly affect how products and services are priced post lockdown. Place –Travelodge has operations throughout the United Kingdom and different parts of Ireland and Spain. The company has nearly 570 hotels only in the United Kingdom which means that it has customers who are loyal to it. After the lockdown is over, the company will have to set up new centres wherein the employees will be trained regarding sanitization methods and how to operate the different technologies related to the same (Haider and et. al., 2017). Also, all the new equipment for sanitization will be placed in the warehouse or in a room where there is not much movement of the staff members because there will a fear that during transportation the equipment might not have been held effectively and sanitized at each step. Therefore, once it arrives, it is important to place it in isolation away from the guests as well as staff members. Promotion –Promotion will play an important role because it will help in encouraging the idea as well as the message that all hotels under Travelodge follow sanitization practices. The company can use various methods to promote this message like newspapers, emails etc. Social media is one of the most effective and efficient ways of doing so. This is because the company will not have to invest in a lot of money to do so. Innovative and engaging posts including pictures, videos etc. can be uploaded on various platforms of social media like Facebook, Twitter and Instagram regularly. This will lead to creating awareness among customers regarding the same as well as attract potential candidates who want to work for the company. 4. Ways that can be use by Travelodge for improving their level of customers as a part of their “Enabling a leading brand” Marketing campaign Due to Corona Virus, Travelodge faced different issues which are heavy loss of earning, reduced customer base and many other. These are main issues that have negative impact on business in term of sales and market share.An additional thing that can supportTravelodgeto attract the large number of customers is to emphasis over contact less servicing as well as delivering of products. This develops the belief among customers that resulted in increment of customer base and also in sales. Along with this, there are some effective ways by which Travelodge can easily improve level of their customers. Effective ways will be recommended to the Travelodge which are explained as below: Use of internet technology:Travelodge must move their brand even more online that will keep them too connected with their customers as well as facilitate a unified customer experience. 9
For this, there are mainly three key areas that Travelodge must focus on are their story, website and data (Sadeghpour and et. al., 2017). Second, revisit their current content marketing and also keyword strategy. Leverage social listening tools and keyword research for topics that give insight into particular data they are seeking. Make sure their PPC, too. This will help hotel in attracting large number of customers and improving their experience towards brand. Development of health and safety team: This is an effective and essential ways that is an effective part of “Enabling a leading brand” Marketing campaign. By using this campaign Travelodge become able to provide information about the health and safety team. This team helps customers by protecting them from any kind of disease, especially Covid19. It will help customers by increasing their experience level about the safety at Travelodge. This will help hotel in increment of customer base and also accomplishment of competitive advantages. Refresh CustomerExperience(CX)Strategiesto Relookat End-to-EndSales Processes:Corona Virus has created unprecedented uncertainty and disruption of when things will get better; meaning Travelodge must pivot their strategy within three critical ways. Travelodge must refresh experience of their customers as well as look at their end-to-end sales procedures to make sure they’re capable to act in response with agility, connect across various sales channels in addition to optimize processes.” This will further support hotel in improvement of their customer level and increment of sales (Jin, 2017). With the help of “Enabling a leading brand campaign, Travelodge must provide information to their customers about customer experience strategies. Regular sensitization:This is an important and necessary way that must be following by Travelodge if they want to increase customer level and also increase their earnings. For this way, Travelodge must sanitise all rooms and every place and make a distance strategy. This will helps them in protecting employees as well as customers from covid19 and motivating them towards brand (Fursov, 2017). Along with this, regular sanitisation helps hotel in making all place are safe that develop interest level of customers towards the brand or product. Implementan AgileStrategicPricingModelto ImproveMargins: Thisisan important way for improving level of customers. For this way, Travelodge must emphasis on short-term strategic planning by developing tools to allow valuable insight gains as of vast amounts of customer as well as market data will facilitate marketers to create rapid changes, protecting revenue (ABOUD and ŞAHİNLİ, 2019). Along with this, Travelodge must also 10
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develop an agile strategic pricing model that will help them in quickly improvement of margins. For this hotel must provide better quality services or products to the customers at reasonable price because due to corona virus most of the people are lost their jobs and some are working with less salary. This strategy or ways will be more suitable and essential for Travelodgein increment of their customer level and accomplishment of competitive advantages within less time period. CONCLUSION It has been concluded from the above report that there is huge need for an organisation to effectivelyanalysetheinternalandexternalenvironmentconditions.Thisprovidethe opportunity to an organisation that focus over the areas which requires more concertation and those attached with large number of opportunities. The role of marketing mix is also very effective towards the direction of attaining objectives. This help in outlining the strategies and implementation process through which an organisation able to get desired objectives. Recommendation From the above mentioned information it has been recommended different ways to the Travelodge in improvement of customer’s level. There is requirement for Travelodge to increase customer’s level with the help of enabling a leading brand campaign. This campaign will help an organisation by providing information about the business and offers.There are suggestions to the Travelodgesuch as hotel must focus over the application of innovative business model. At this time, they will give the home delivery services to their customers so they can get business offerings at home without exposing to the situation of contamination. Also,Travelodgehas to emphasis the ordinary sanitisation of the operational area as well as employees along with normal check-up of staff members and those who get in contact. This gives the chances to identify the individual who has a number of health problems so suitable action will be taken. 11
REFERENCES Books and Journals ABOUD, A. and ŞAHİNLİ, M. A., 2019. SWOT and TOWS analysis: an application to cocoa in Ghana.Scientific Papers: Management, Economic Engineering in Agriculture & Rural Development.19(1). Armstrong, G. M., Kotler, P., Harker, M. and Brennan, R., 2018.Marketing: an introduction. Pearson UK. Chaffey, D., 2019.Digital marketing. Pearson UK. Crnčan, A., Škrtić, Z., Kralik, Z. and Mihaljević, A., 2017. TOWS analysis of ecological productionofeggs.In10thInternationalScientific/ProfessionalConference, AgricultureinNatureandEnvironmentProtection,5-7June2017,Vukovar, Croatia(pp. 216-220). Croatian Soil Tillage Research Organization. Fursov, V. A., 2017. Marketing planning in industrial enterprises in the context of import substitution strategy. Gottfried, O. and et. al., 2018. SWOT-AHP-TOWS analysis of private investment behavior in the Chinese biogas sector.Journal of Cleaner Production.184. pp.632-647. Haider, A.A. and et. al., 2017. Marketing Management.Head, B, p.22. Hollensen, S., 2019.Marketing management: A relationship approach. Pearson Education. Jin, L., 2017. Marketing Plan Development for Online Travel Agency ToursForFun. Kotler, P., Bowen, J. T., Makens, J. and Baloglu, S., 2017. Marketing for hospitality and tourism. Kowalik, K. and Klimecka-Tatar, D., 2017. SWOT-TOWS analysis as a planning tool of process improvement based on PDCA cycle in service enterprise.Zeszyty Naukowe. Quality. Production. Improvement. Patti, C. H., Hartley, S. W., van Dessel, M. M. and Baack, D. W., 2017. Improving integrated marketing communications practices: A comparison of objectives and results.Journal of marketing communications.23(4). pp.351-370. Sadeghpour, F., Far, M. G., Khah, A. R. and Amiri, M. A. A., 2017. Marketing Strategic Planning and Choosing the Right Strategy using AHP Technique (Case Study: Ghavamin Bank Mazandaran).Dutch Journal of Finance and Management.1(2). p.45. Wood, M. B. and Jobber, L., 2016.The marketing plan handbook. Pearson. Online AnintroductiontoTOWSAnalysis.2020.[Online]Availablethrough:< https://getlucidity.com/strategy-resources/an-introduction-to-tows-analysis>. 12