Marketing Strategies for Premier Inn: A Customer Retention Analysis

This report provides a comprehensive analysis of Premier Inn's marketing strategies, focusing on the marketing mix, relationship marketing, and customer retention techniques within the hospitality industry. The introduction establishes the context of the report, highlighting Premier Inn's position as ...Read More

Marketing
and
Customer Retention

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Discuss marketing mix in context of hospitality organisation as per marketing strategies....1
2. Analyse the characteristics of organisation's relationship marketing programme within
explain its success and failure as customer retention tools with reasons....................................3
3. Design the valuable loyalty programme towards organisation context within hospitality
industry........................................................................................................................................5
CONCLUSION................................................................................................................................7
REFERNECE...................................................................................................................................8

INTRODUCTION
Marketing is a practise of selling, distributing, advertising and manufacturing of product
and services to accomplish people's expectation. The customer retention comprises to ability of
company of product to retain or hold their customer at some particular period of time (ANWAR,
FERINE and SIHOMBING., 2020). It differentiate customer retention in two factor of high and
lower buyers to return business trend and continue to buy in some situation manner for not defect
to another product or business.
As in this report, the company is taken Premier Inn, it is British based hotel chain and
United Kingdom largest rooms with more than 72,000 rooms and 800 hotels worldwide. It
majorly operates hotels in variety location including city centres, suburbs and airports where they
competing with other brands (Baum, 2019). It was founded 1987 Dunstable, England, United
Kingdom. In report topics are to cover Marketing mix to implement marketing strategies.
Discuss characteristics of organisation's relationship marketing programme and design strategic
marketing plan with loyalty programme.
MAIN BODY
1. Discuss marketing mix in context of hospitality organisation as per marketing strategies.
Marketing mix refers about collective actions or strategy which is utilise by company
uses promotes its brand a product in the market. It contains 4ps of marketing mix that derives on
the basis of product, price, place, promotion others are added as process, people and physical
evidence (Camilleri and Rather, 2019). The purpose of marketing mix having purpose to helps
organisation for making strategic decision to attain competitive advantages of marketing. In
below there is analysation of marketing mix for Premier Inn hotels:
Elements of
Marketing mix
Marketing mix describes for Premier Inn.
Product As in service industry like hospitality and tourism they offers product as in
term of packages or largely intangible. The Premier Inn hotels comes
under hospitality industry which is quite unique compares with other
industries (Cheng and et. al., 2019). Their product is in form of services
which they have variety of services in terms of personal care through
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facilitates quality of food and beverages along with hospitality services.
They ensure that product must effective than their customer.
Price The price are consider to be value of particular product and services, in
hospitality business like Premier Inn implements their pricing according to
quality of service that involve service cost, promotional cost and others.
All cost makes Premier Inn services unique as well as specify their
revenue effectively (Dixit, Lee and Loo., 2019). They focuses on customer
buying behaviour and what quality service they looking for on that basis
Premier Inn provides particular services to them.
Place In hospitality industry their services enhance in different source of location
to location to critically evaluate their business success. Premier Inn has
established metro cities as it based from United Kingdom. But they have
opened their branches in worldwide, some of these factor includes,
accessibility, supports traffic pattern and attractive business infrastructure
(Kandampully, Zhang and Jaakkola., 2018). Hotels are measured market
to establish their venture on the basis of demographic traits or by mapping
distribution area of living.
Promotion This is most valuable and important practise which every hospitality
pursue for taking participation in promotional activities. The purpose of
promotion for product and services to generates effective awareness in
market as well as in customer mind. Different hospitality business having
different promotional activity such as Premier Inn Hotels, their
promotional strategies to raise awareness about services, intergerate sales
volume and create of branding image and having motive to attain more
market share. The promotional activities which utilise by Premier Inn as
advertising in Television, billboards and internet. Sponsorship associated
with another firm through different event causes.
Process Process having objective to provide customer information related with
product and services processing with proper interaction to generating
servicing. As Premier Inn, having their norms, policies, procedure and
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advanced resources that helps to prepare that need to be customer friendly.
Quality of product and service prevails responds for customer needs and
requirement which reflects efficiency of process management.
People To hiring or having people in hospitality marketing mix means to
workforce and customer aspects. For Premier Inn hotels, people means to
them as customer services which driven by employees or staffs of their
attitude that reflective of hospitality firms. The manager of Premier Inn
Hotels acquire people from managerial activities in terms of recruitment
and selection to selecting right customer for right job. Training and
development to develop skills and knowledge for accomplish greater aims
(Khalid and Wilson, 2019).
Physical Evidence The physical evidence in which customers can actually presumes
experience when they assort services. As Premier Inn has their tangible
services which their services of physical evidence in terms of
infrastructure that increase to building itself. In United kingdom, Premier
Inn having more goodwill related with temperature and noise with
appearance of staff, web pages or websites and appearance of
advertisement.
2. Analyse the characteristics of organisation's relationship marketing programme within explain
its success and failure as customer retention tools with reasons.
Relationship Marketing: This framework of practise is refers as Customer relationship
management that focuses on particular loyalty of customer aspects along with customer
engagement rather short term goals such as customer acquisition and individual sales. The
objectives of relationship marketing that helps to creates effective emotional and making
connection with customer for leads ongoing business (Kim and Jeong, 2018). For perspective
Premier Inn, their manger having customer relationship marketing which tend to increase
number of individual sales. There are some characteristics of relationship marketing in
perspective of Premier Inn are:
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 Higher Customer lifetime value: The relationship marketing have forms better
customer loyalty that leads to repeat purchase and higher Customer lifetime value. As
addition, loyal customer are likely to become brand advocator or endorsements which
recommending product and services to friends and family and business associates. In
perspective of Premier Inn, they also concerned for their people interaction and they
provides more beneficial services to making them engage.
 Reduction in marketing and advertisement: To enhancing expenses for effective
marketing and advertising to acquire new customer could be expensive (Leong and et.
al., 2019). Premier Inn having better marketing awareness in United Kingdom where
they offers optimum product and services which enhance to drive sales. Manager of
Premier Inn not spend any amount on promoting for their brand because they have
already captured half of market.
Success of Customer Retention for Premier Inn perspective. Better Conversion rates: From existing customers when they engaged with hospitality
services it generates scope of benefits as profit and healthy customer relationship. As it
easier to predict easier to identify better needs (Litvin, Goldsmith and Pan., 2018).
Similarly, Premier Inn also retain existing customer where it prevails more profit as well
as more interaction. Target Customer with special offers: Through customer relationship practises to
determine approaching new customer by facilitating unique concept of product and
services along with offers and discounts. As Premier Inn also provides certain discounts
or complementary services to existing customer which helps to retain and develop trust
for long term purpose. Loyal Customer are more profitable: According to research, customers who are regular
utilising servicing is more 90% generally. Organisation like Premier Inn makes contact
with their old customers who experienced their services and management team offers
huge discounts and extra benefits that interact to purchase more in further situation. Engage customer prevents more feedback: It happens when customers who are loyal
with their preference brand or services they provide feedback towards more improvement
(Mariani, Borghi and Kazakov., 2019). As in Premier Inn, a research shows people
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complained about their issues related with services in which team of Premier Inn follows
overall grievances and putting efforts to resolve it effectively.
 Excellence Services: By facilitating extraordinary service to customer can increase their
expectation and they could attain more service from hospitality organisation. In the
perspective of Premier Inn, their customer can get retain by analyse that needs and wants
are fulfilled and more it influence towards refer to others which brings more benefits to
the hospitality organisation.
3. Design the valuable loyalty programme towards organisation context within hospitality
industry.
Loyalty Programme: It is marketing tactics which designed to motivate customer by
continuing or use of services of business related associated with program. It usually includes
through operator towards specific program which helps to setting up with customer and business
relationship by issuing customer loyalty card (Mmutle., 2017). Every hospitality business is
having their loyalty customer program where it utilise as marketing activities and attract
customer for more advancement as well as retain them fort long term purpose. For Premier Inn,
they own their loyalty customer program as by offering customer Premier Inn Passport to those
customer who are loyal or existing clients where they can get more rewards in terms of service
discounts. But there some other loyalty program which helps to Premier Inn customer to
increasing more retention: Offer more benefits: As to existing and new customer Premier Inn can make policy that
they can provide some extra benefits in their service quality which easily helps to engage
customer with them. This practise can increase more healthy relationship with other
customer and organisation would easily accomplish clients expectations that enhance
more loyalty program. Increase revenue: Through customer retention it leads to boosts profit which simply
loyal customer and having more trust into brand (Rahimi and et. al., 2017). This can be
Loyalty Programme of Premier Inn where they enhance more improvement in their
services quality and successfully attract customer can boosts up their sales. More Benefits to premium customer: As many high buying customer arrives to explore
services. Premier Inn can initiate about customer if they approach for premium services
management would give free transportation and other intangible services (TAKACS. and
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VADUVA, 2017). This practise can enhance more satisfaction and improves customer
loyalty towards Premier Inn. Creativity in desire: In perspective of customer they must analyse through participating
from reward program as well as gain more experience. Premier Inn can also implements
reward system for more engaging experience towards customer point of view. As
hospitality team of Premier Inn improves their service design that encourage more
customer interaction.
 Provide Feedback authority to customer: This is one of the important Loyalty program
for Hospitality services related. Premier Inn is having this facility in their premises where
existing and new customer can share their suggestion or feedback (Ujang and et. al.,
2016). From this regular practise can enhance better improvement with ensures to
provides satisfactory service in more creative manner.
From above points which highlight loyalty program for hospitality business in
consideration of Premier Inn, through this practise it enhance more customer interaction as well
as increase the growth of business for further aspect. The main focus to Premier Inn loyalty
program towards customer satisfaction by enhancing more extra customised services which
makes feels the customer more engaging in terms of discounts, benefits in more staying offer
packages. By commencing more interaction with people and collect information from them
about what kind of services they are looking for? As well as to retain Loyalty program plays
important role to generate more customer retention. Premier Inn is having their own loyalty
practise in which they usually offers their existing customer who utilising services from long
time by offering them Premier Inn Passport along with some rewards that derives more extra
services in effective manner. Apart from that, some above suggested and through 7ps of
marketing mix and relationship marketing helps to gain competitive advantages and having
success to retain customer in terms of sustainability, increase of growth and having more
profitability from other competitors.
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CONCLUSION
Through above report Marketing and customer retention in hospitality perspective has
summarised by explaining marketing mix in extended format of using 7ps marketing mix. By
mentioned characteristics towards organisation relationship marketing programme as well as
elaborates process to attain proper marketing strategies. To designed marketing STP along with
highlight target market in consideration of hospitality organisation and describes success or
failure by elaborates few points as tools with proper justification. At last formed loyalty program
explains in selected hospitality organisation to helps retain customer. It also further derives about
loyalty customer can prevails more business oriented advantages in terms of creativity in service,
offer discounts and feedback approaches that marketing plan for hospitality business within
impact and gain high competitive advantages.
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REFERNECE
Books and Journals
ANWAR, Y., FERINE, K.F. and SIHOMBING, N.S., 2020. Competency of Human Resources
and Customer Trust on Customer Satisfaction and Its Consequence on Customer
Retention in the Hospitality Industry North Sumatra. Journal of Environmental
Management and Tourism. 11(6). pp.1515-1519.
Baum, T., 2019. Does the hospitality industry need or deserve talent?. International Journal of
Contemporary Hospitality Management.
Camilleri, M.A. and Rather, R., 2019. The effects of service quality and consumer-brand value
congruity on hospitality brand loyalty.
Cheng and et. al., 2019. An investigation on online reviews in sharing economy driven
hospitality platforms: A viewpoint of trust. Tourism Management. 71. pp.366-377.
Dixit, S.K., Lee, K.H. and Loo, P.T., 2019. Consumer behavior in hospitality and
tourism. Journal of Global Scholars of Marketing Science. 29(2). pp.151-161.
Kandampully, J., Zhang, T.C. and Jaakkola, E., 2018. Customer experience management in
hospitality. International Journal of Contemporary Hospitality Management.
Khalid, A.N. and Wilson, A., Factors influencing consumer retention of mobile apps: A
Conceptual perspective on the high-street retails.
Kim, H.J. and Jeong, M., 2018. Research on hospitality and tourism education: Now and
future. Tourism Management Perspectives. 25. pp.119-122.
Leong and et. al., 2019. Enhancing consumer online engagement through consumer
involvement: A case of airline and hospitality services in Malaysia. Management Science
Letters. 9. pp.795-808.
Litvin, S.W., Goldsmith, R.E. and Pan, B., 2018. A retrospective view of electronic word-of-
mouth in hospitality and tourism management. International Journal of Contemporary
Hospitality Management.
Mariani, M.M., Borghi, M. and Kazakov, S., 2019. The role of language in the online evaluation
of hospitality service encounters: An empirical study. International Journal of
Hospitality Management. 78. pp.50-58.
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Mmutle, T., 2017. Customers' perception of service quality and its impact on reputation in the
hospitality industry.
Rahimi and et. al., 2017. Customer relationship management research in tourism and hospitality:
a state-of-the-art. Tourism Review.
TAKACS, J. and VADUVA, S.A., 2017. A swot analysis of the global hospitality
industry. Revista Economica. 69(6).
Ujang and et. al., 2016. Factors influencing consumer’s intention to use self service technology
in tourism and hospitality industry. International Academic Research Journal of Business
and Technology. 2(2). pp.118-122.
Online
Strategies For a Creative Loyalty Program, 2018 [Online] Available Through:
<https://blog.smile.io/differentiate-with-creative-loyalty-program/>.
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