Marketing Report: Hospitality Industry Analysis and Strategies

This report provides a detailed analysis of marketing strategies within the hospitality industry, focusing on two organizations: Granada and Thomas Cook. It begins with an introduction to marketing concepts, emphasizing the importance of meeting customer needs and adapting to changing trends. The report then delves into the impact of the marketing environment, including micro and macro factors such as SWOT and PESTLE analyses, and evaluates the relevance of consumer markets, exploring consumer behavior and buying patterns. It also covers market segmentation strategies, including demographic, behavioral, psychographic, and geographic segmentation. Furthermore, the report examines the components of the marketing mix (product, price, place, and promotion), analyzes pricing strategies, and discusses the role of the promotional mix, sales promotion, public relations, and market research. The report concludes with an overview of advertising campaigns, marketing media, and the implementation of a comprehensive marketing plan.

Marketing in Hospitality
Industry

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
1.1 Concepts of marketing..........................................................................................................3
1.2 Impact of the marketing environment on the industry..........................................................4
1.3 Evaluate the relevance of consumer markets in the industry................................................5
1.4 Developing different market segments.................................................................................6
TASK 2 ...........................................................................................................................................7
2.1 Importance of the components of marketing mix.................................................................7
2.2 Analyse pricing strategies and policies.................................................................................8
TASK 3............................................................................................................................................8
3.1 Role of the promotional mix.................................................................................................8
3.2 Role that sales promotion and public relations....................................................................8
4.1 Relevance of market research..............................................................................................9
TASK 4............................................................................................................................................9
3.2 Covered in Poster..................................................................................................................9
4.2 Undertake market research for an appropriate product or service........................................9
4. 3 Suitability of different media for marketing......................................................................11
4.4 Implementation of the marketing plan...............................................................................12
CONCLUSION .............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
Marketing is crucial tool to identify the needs and demands of the customers and
satisfying the same with company's products and services. It needs to keep an eye on changing
trends that would aid to construct strategies and plan to attain the organizational goals (Bowie
and et al, 2016). The report is based on the hospitality industry which is very well known for
recreation, dining, accommodation services and facilities . This report is based on two
organizations namely Granada and Thomas Cook and with these travel and tourism
organizations underpins marketing concepts, impact of marketing environment, relevance of
consumer markets, marketing segments, marketing mix pricing strategies and policies. In
addition it also includes promotional mix, sales promotion and public relations, market research
along with advertising campaign, marketing media and marketing plan .
TASK 1
1.1 Concepts of marketing.
Marketing plays a significant role for the hospitality industry and it will support to the leaders
of hospitality industryin order to meet their objectives. The main goal of the industry is to meet
customer's expectations, their needs and requirements (Chan and Guillet, 2011). There is a huge range
of hospitality products and services in the form of restaurant, dining, accommodation and leisure. The
hospitality industrycan apply marketing to fulfil the customer's demands with the following concepts -
Product concept – If hospitality industrywould be able to provide quality of the product and
services with an economic price then it would need to put less marketing effort in order to meet the
goals of the organization. For an example, the hotel can provide quality food that will be enough to
catch the attention of people.
Selling Concept – According to the selling concept the targetted customers would purchase
the products only when the product will be promoted aggressively. The product needs to promote with
intensity without knowing the customer's needs so that the customer would can buy the product (Hsu,
Oh and Assaf, 2012). For an example, the hospitality industrycan promote the accommodation
services without knowing the customers requirement and the customer purchase the product to stay.
Marketing Concept – Marketing concept is concentrated on identifying the needs of the
customers which is essential for the organization to be successful in long run. Because its core focuses
is on satisfying the customer is an effective way.

Societal marketing concept – Societal marketing is centred to provide contentment to the
end user of the products and services in order to meet the objectives and goals of the hospitality
industry.
1.2 Impact of the marketing environment on the industry.
Marketing environment has an important role for the organization to decide the success or
failure of a marketing plan which is adopted to promote the Granada hotel. The hospitality
industryoperates on both the micro and macro environmental factors which can be altered (Kotler,
2013). These changes can be beneficial for the opportunities and can also work as threats. So it
becomes important to analyze micro and macro environment. There are different aspects of such
environment and that given as below -
Micro environment – SWOT analysis
Strength Weaknesses
 The main strength of Granada it
provides a fun experience.
 It has friendly staff to assist and resolve
grievances.
 If the company is new and then it
would have less market share.
opportunities Threats
 Increasing demand for budget hotels
due to in tourist destinations.
 Better facilities are providing by the
rivals.
Micro environment – PEST analysis
Political factors – Government taxes, laws and regulations creates a deep impact on the
hospitality industry. The hospitality industry has to follow the rules and regulation that are established
by the government in order to operate the business effectively and without any disruption.
Economical factors – The business depends upon the per capita income and GDP of the
country. The business of the Granada the depends on these factors because there it can increase and
decrease the spending power of the people (Leung and et. al., 2013). If per capita income is higher
then people have the power to spend their dollars on recreation but if it is less then it will impact on
the hospitality business.

Social factors – The preferences of people can be impact on the Granada because they may
have different ideas and thoughts that can affect the image of the hotel.
Technological factors – The technological aspects can influence the business such as
Granada would not offer online services then people needs to put more efforts and it will decrease the
presence among people . Therefore, it needed to adopt the technology to run a business in an effective
manner.
Environment factors – The hotel business are impacted by the ecotourism and it increases
the revenue of the Granada but it needs to manage the waste that is harmful for the earth. The hotels
of hospitality industry should be careful for the environment because that produces the wastage.
Legal factors – The legal factors are the established policies that should be followed by the
Granada because in case it violates these policies then it would pay the fine because of the offensive
activities . The hospitality industry is needs to be carefully follow the rules and regulations to run the
organization for a long time.
(Source : Business environment, 2012)
1.3 Evaluate the relevance of consumer markets in the industry.
It is essential for hospitality industryto recognize the needs of the customers to satisfy them in
order to meet their target. The people who buys the hospitality services are the key elements of the
industry in order to determine the success of the organization. (Leung, Baiand Stahura, 2015).
Consumer are the core part of the hotel business and that' why it is important to identify about their
spending nature towards the luxury of life. Consumer's buying behavior can be derive through
personal influences and external environment that are reflected in buying patterns of the hospitality
Illustration 1: Business environment

industry. The hospitality industry is derive through the motivation of consumer behavior such as the
hospitality industry needs to attract the customer for the packages and other facilities to encourage the
buying power of customers.
Black box is an approach to study consumer behavior the attributes which aid to support the
buying decisions of the customers. It refers to the thinking of a person who concentrates on various
factors that are related to external aspects. According to the black box model the consumer buying
behavior is based on stimuli which is came from environmental affects, then it goes through the
buyer's black box (that is mind) where a decision is formed. The black box consists of two parts that
are characteristics and decision process and the final outcome is the consumers response to purchase
the products in market. The attitude of a customer for a specific product is characteristics such as
brand title and purchasing decision is an outcome of black box. The black box is the core element of
consumer buying behavior to determine the purchasing pattern.
(Source : FACTORS INFLUENCING THE CONSUMER BUYING BEHAVIOUR )
Illustration 2: FACTORS INFLUENCING THE CONSUMER BUYING BEHAVIOUR

1.4 Developing different market segments.
There are different kinds of market segmentation which is used to focus on the business
activities in order to target the customer. Because every person has different needs and wants and
hospitality industry need to conduct a market research on the basis of these segmentation that are as
follows -
Demographic segmentation – Demographic segmentation is the simplest market
segmentation which is used to divide the population according to their age, gender, family size,
income, occupation, religion, race and nationality (Line and Runyan, 2012). For an instance, the
customer who are entrepreneur by profession they can has high income and they would not worried
about the expenses of travel and therefore the hospitality industry can show them luxury packages to
stay there with lavish facilities.
Behavioral segmentation – The behavioral segmentation is based on the behavior, usage and
decision patterns of the targeted people. For example, the young generation would like to spend their
vacations at the most eminent places therefore, they would like to opt for package that are available on
reasonable prices. So the Granada needs to offer affordable price that can encourage the people to
make purchases.
Psycho graphic segmentation - Psycho-graphic segmentation is based on the lifestyle,
activities, interests, priorities and buying nature. It is quite similar to behavior segmentation because it
is depends on the consumer buying behavior that are related to the psychology of the consumer.
(Minazzi, 2015). In hospitality industry is the products are up to mark of customers needs and
expectations then they will not see the prices of the products and services.
Geographic segmentation – Geographic segmentation is based on the geographic regions
like there are different climate in distinct regions and therefore their requirements are different. The
hospitality industry should provide the facilities according to the local area where it is situated. The
facilities should be provided to the guests like it can provide the cab facility for the user if they
wanted to visit to the rural area.
TASK 2
2.1 Importance of the components of marketing mix
There are 4Ps of marketing mix which are most important that are as follows -
Component marketing mix

Product Thomas Cook needed to establish products
according to the requirements that satisfies the
needs of the customers.
Pricing strategies The customers are attracted towards the low
prices so Thomas Cook should implement the
affordable prices of products that can increase
the sales.
Place Thomas Cook should be situated on an
accessible location from where the people can
reach its address easily.
Promotion In order to increase its sales the Thomas Cook
can promote the products and services on
social media and messages so that the
customers can reach it frequently.
The marketing mix is important to promote Thomas Cook in order to increase the sales of
the organization.
2.2 Analyse pricing strategies and policies
Pricing strategies states that the cost of the product can be based on demand or competition. This is
the major source to meet the financial objectives of the firm (Myung, McClaren and Li, 2012). Thomas
Cook can attain its targets with focusing on the competition pricing strategies cause it will derive the
customer because the people can easily compare the products according to the price of of packages and
products with other organization .
Pricing policies are based on the demand supply it can be increase and decrease. For and example, if
there are increase in the tourists in Thomas Cook then there would be rise in the price because it does not
required to decrease the price because of the full accommodation. The penetration pricing refers to enter in
the market with low pricing that can capture the customer in market. The pricing strategies needs to maintain
the level of business.
Whereas the competition pricing strategies can be define to keep the low prices with the other
organizations in order to sustain in the market for a long run.

TASK 3
3.1 Role of the promotional mix
There are various promotional techniques that are given below -
Public relation – The public relation is appointed by the organizations to provide the
business to the organization with positive image. Basically it is practice to manage and spread
the information between an organization and the public ( Nunkoo, Gursoy and Ramkissoon, 2013).
Sponsorship – Sponsoring some event is an act of supporting an event, activity, person
or organization through finance and products or services is known as sponsorship because it is
aid to gain the benefit. If Thomas Cook sponsors some football team in a match then it will get
marketing in the match and people noticed the sponsors that will create a brand image of the
organization among the people.
3.2 Role that sales promotion and public relations
a) Five types of sales promotion
There are five types of sales promotions such as discounts, coupons, gifts, exchange
offers and financing all of these can be used by the Thomas Cook in order to increase the sales
and the third party can take a profit margin ( SW Chan, 2013). The customer will also get some
profit on purchasing. This will encourage the prospect customer to purchase goods and services
and this will increase the sales for the company and beneficial for the intermediaries as they will
also get some reward or amount as profit from the company.
b) State and explain five ways that public relations
In order to establish the business reputation there are five PR tool can be used such as-
sponsorship, business events, social media, brochures and media relations. Sponsorship, business
events and social media can be used to spread the information about the Thomas Cooks new
products, packages among the public in order to aware the people and gain the profit.
4.1 Relevance of market research
The market research is important to recognise the market requirements and needs in order
to meet the objectives of the business. Because of the market research the firm identifies the
areas of innovation in products and services for a better improvement. ( Tsiotsou and Goldsmith,
2012). It is important to collect the information about in an area where it needs to improve the
products and services in order to meet the satisfaction level of customers. Thomas Cook can

conduct a marketing research to identify the expectations and requirements of people so that
they can implement innovation to satisfy the customer's needs.
TASK 4
3.2 Covered in Poster.
4.2 Undertake market research for an appropriate product or service
Market research is a an important tool to recognize the needs and requirement of the
customers. It is uses to assess the sustainability of new goods and services in the market because it
identifies the potential market where the new services can be sale to gain profitability (Yoo, and Bai,
2013). The research can be conduct with primary research methods and secondary method. The
primary research is used to get the information from focus groups, surveys, interviews and
observations. Whereas, the secondary research is focused on applying the results of previous study on
present situations.
Primary research Secondary research
 Thomas Cook conducted a primary research to know the needs of the customers. It
surveyed in the local region to identify what kind of packages are required by them. The
company is offering 20% discount vacation package so the primary research is conducted
to know the affect of that package on public.
 The questionnaires will be asked in an
interview and then a feedback will be
generated from the customer with
respect of products and services. .In
secondary research the quality output
will be generated in order to study
about the reaction of the public for the
20% discount package.
 It will identify the efforts are working
or not or it need to change the
strategies.

The market research is conducted with few questions in order to identify the thoughts of prospect
customers and to determine the innovation that is required to increase the sales.
QUESTIONNAIRE
Name:
Gender:
Age:
Contact no.
1. From which source you come to know about the services?
 Newspapers
 Acquaintance
 Digital media
2. From which sources you purchases the product?
 Offline sources
 Online sources
3. Which source is opted to retrieve the information about product?
 TV
 Internet
 Print Media
4. Are you satisfied with Thomas Cook quality standards?

 Yes
 No
5. Do Thomas Cook needs to take review on its prices?
 Yes
 No
4. 3 Suitability of different media for marketing
There are various forms of media that is used for marketing in order to increase the sales. The
media platform can be TV advertisements, print media like newspapers, magazines, brochures, leaflets,
etc. and in modern scenario internet is the major source of advertisements (Yoo, Lee and Bai, 2011).
TV Print Media Internet
 TV is the primary
source of
advertisements from
years ago, and it is still
major source of
advertisement because
it is used to promote
the products with
animation affects that
attracts the user.
 For example, Thomas
Cook can sell its
packages with
presenting its
accommodation
facilities in video that
 Print media can be
promote the products
and services by giving
the advertisements in
magazines, newspapers
, etc.
 The people who have
an habit to read the
newspapers then they
will be aware about the
new products and
services of Thomas
Cook.
 Internet is the most
prominent source to
promote the services of
Thomas Cook because
in present time the
customers can access
the products and
services easily through
rankings and reviews of
the existing users.
 There are various
techniques which can
used to promote the
products like Thomas
Cook can utilize the
social media, SEO,