Marketing Analysis and Strategies for Travelodge: A Report

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This report provides a comprehensive analysis of Travelodge's marketing strategies within the hospitality sector. It begins with an introduction to marketing and its importance, followed by an examination of the roles and responsibilities of a marketing department, including market research, customer satisfaction, and brand equity. The report then explores the interrelation between the marketing department and other key departments within the organization, such as HR, finance, and production. A comparative analysis of the marketing mix of Travelodge and Hilton is presented, highlighting differences in product, price, place, promotion, people, and process strategies. Finally, the report concludes with the development of a basic marketing plan for Travelodge, offering insights into its future growth. This report is a valuable resource for students and professionals seeking to understand marketing principles and strategies in the hospitality industry. The report also includes references to support the information provided.
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Hospitality Marketing
Essentials
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Table of Contents
INTRODUCTION ..........................................................................................................................1
LO 1.................................................................................................................................................1
P1: Various roles and responsibilities of Marketing department................................................1
P2 Explain the interrelation between marketing and various department in relation with the
company......................................................................................................................................2
LO 2.................................................................................................................................................4
P3 Comparison of marketing mix of two different enterprise of same sector............................4
LO 3.................................................................................................................................................6
P4 Development of a basic marketing plan.................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
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INTRODUCTION
Marketing is an essential tool which is used to promotes the brand image of the company
in the market so organisation can easily achieve its goals and targets. It is process through which
company attracts maximum number of customers to increase the productivity of the company
and also maintain effective relationship with the customer's which creates loyalty. For this
assessment, Travelodge company is taken which deals with hotels and hospitality sector in UK
(Mahrous and Hassan, 2017). It is one of the largest company of UK in hotel sector. In this
report, discussion about different roles and responsibilities of the marketing managers are
involved and also includes inter-relation of different other departments of organisation with the
marketing department. In this, an effective marketing plan is developed which is very essential
for the company for further growth.
LO 1
P1: Various roles and responsibilities of Marketing department
There are various roles and responsibilities which are performed by marketing
department of all organisations. Marketing department plays an important role in increasing the
numbers of customers by providing products and services according to their needs and
preference. The marketing department of travelodge also have some roles and responsibilities
towards the success and growth of the company. There are various strategies which are set by the
marketing department of travelodge which leads the overall organisational goals and also
maintain effective relationship with the customer with the help of proper communication. There
are various roles and responsibilities which are performed by the marketing department of
travelodge are as follows:
Market research: The important responsibility of the marketing department is marketing
research because it is very helpful for the travelodge to find different opportunities that are
presents in the market and market research also helps to understand customers needs more
effectively (Alnawasand and Hemsley-Brown, 2018). This role is properly performed by the
marketing department of the travelodge by providing goods and services according to the
demand of the customers. Travelodge also identify the strength and weakness of the competitor
with the help of market research and take appropriate action to win the business from the
competitors which are weak in the marketplace.
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Customers satisfaction: It is one of the most important role which needs to perform by
the marketing department of any organisation to ensure the maximum level of satisfaction that is
derived from the consumption of products and services of the organisation. This role is very
effectively performed by marketing department of firm by taking feedbacks from the customers
regarding products and services quality etc. so this will helps the company to find out various
issues which faced are by customers related to products and services and all such issues are
solved by the travelodge to provide customer satisfaction and maintain brand image.
Formulating marketing strategies: marketing strategies are helpful to accomplish
overall objectives and goals of the organisation so marketing department of travelodge set
various marketing strategies which are very useful for effective promotional and marketing
activities. UK is a country in which several types of individuals that follow different culture are
living. Therefore diversity marketing strategy is used by firm to increase its market share such as
when expanding its business in new sector, introducing new channel for distribution, targetting
new geographical area and many others (Huang, 2018).
Managing budget for marketing: Marketing department of the organisation formulate,
implement, and manage the whole budget of the marketing activities. Organisations track all the
changes of technology, taste and preference, innovation and many others that takes place in the
market and then formulate the budget by considering all such changes of marketplace. This is
necessary because there are various internal and external factors of the environment which effect
the marketing activities as well as operations of the organisation so marketing department of
travelodge set its marketing budget by tracking various changes in the marketplace so that all the
marketing activities can be carried out in proper way.
Brand equity: Brand equity is a role which is performed by the marketing department of
the travelodge (Utaminingsih and Purnomo, 2017). It refers to the value of the company in all
over the market. So travelodge uses various ways to build better image of the company in the
front of customers such as advertisement, promotions and so on. Because in existing market
customers wants to purchase only those product which have good brand image in the market.
P2 Explain the interrelation between marketing and various department in relation with the
company
Marketing department of travelodge work with the different other departments to increase
the overall performance of the organisation. This is also helpful for the different department to
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work effectively and efficiently towards the organisational success. The inter-relation of
marketing department with the different organisational departments are given as follows:
Marketing department and human resource department: HR department of
travelodge fulfil all the requirements of skilled and talented manpower according to the need of
organisation. Where all the advertisement of required skills and knowledge for vacant job is done
by marketing department of the travelodge. So, if HR and marketing department of travelodge
work together then it is very beneficial for growth and success of the company. Human resource
department provides data of required skills and knowledge to the marketing department for
advertisement and attract maximum number of candidates for the particular job.
Marketing department and finance department: All the fund related requirements are
fulfilled by the finance department of the company by providing appropriate money to the
different departments for the different activities which they performed on the regular or irregular
basis (Aluri, Slevitch and Larzelere, 2016). As without proper money, any business organisation
can't perform better in the existing marketplace. Finance department of travelodge provides
proper fund for the advertisement and promotion related activities where as marketing
department suggest the finance department regarding management of fund.
Marketing department and production department: All the products and services are
developed by the production department of the company. It is a key responsibility of the
marketing department towards the promotion and advertisement of those products and services
so that maximum numbers of the people will get aware about all the products and services which
offered by travelodge. And marketing department provides the information regarding the current
taste and preference of the customers so this will helpful for the production department to
produce products and services according to the current demand of customer's.
Marketing department and house keeping department: The works of the house
keeping department is to increase the revenue of the company by maintaining the rooms of the
hotels. The quality of the rooms are very important to build effective company image (Tassiello,
Viglia and Mattila, 2018). So the inter-relation between these two department is necessary
because house keeping department is very important to build good brand image by considering
the quality of rooms at the time of promotion and advertisement by marketing department of the
travelodge.
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Inter-relation between different departments are necessary because it leads effective
communication between the employees of the travelodge. Effective communication between the
different departments reduces the conflicts and also increases the efficiency and competencies of
the employees towards the goal of travelodge (Ozturk, 2019). Inter-relation also strengthen the
productivity of the travelodge such as finance department provides sufficient fund to the
different departments so that they can able to perform their regular activities and task properly
with out any problem. Where as marketing department focuses on the promotion and
advertisement which increases the sales and market demand of services of travelodge.
LO 2
P3 Comparison of marketing mix of two different enterprise of same sector
Marketing mix is the tool through which an enterprise uses various strategies to increase
the sales of the company by attracting maximum number of customer's. In this following task,
comparison is done between two companies marketing mix which are Hilton and travelodge.
Basis Travelodge Hilton
Product It is also a second largest
company of hospitality sector in
UK which provides well fully
furnished rooms with Wi-Fi
facility, proper room service and
many other. The travelodge
provides good facilities
according to the money which
spent by the customers.
The Hilton is one of the largest
hotel chain which provides variety
of hospitality services to the
customers (Vuignier, 2017). It
includes luxury hotel chains which
targets the leisure segments as
well as business segments. In it
includes luxury rooms,
accommodation service, gambling
and entertainment.
Price Travelodge provides good
services at least price because it
is targeting casual and low
spending behaviour customers. It
also provides various discounts
and coupons for early booking
Hilton set premium pricing policy
for their customers. As their
products provides high value and
developed specifically to target
upper market. They also provides
membership cards for their regular
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peoples. Pricing skimming
strategy followed by them to
capture more market area.
customers.
Place Travelodge located at the
entrance of the different cities
which are the best suitable
location because travelodge is
targeting low income people so it
can't afford the prime location of
the city (Suhartanto, 2018). They
operates business in Europe, UK
and Paris.
It has great brand image among
the customers because of its
luxurious infrastructure and
service. Mostly all the hotels of
Hilton are situated at a prime
location of the city and its
beautiful infrastructure attracts the
customers. Hilton perform their
operations in US, UK and South
Africa.
Promotion Travelodge uses digital
marketing which is one of the
best marketing tool for the
advertisement and promotion
because of continuous increasing
internet users. It also provides
several offers and discounts to
the customers which boost the
word of mouth marketing.
Hilton uses digital media
marketing for promotions and
advertisement ( Vuignier, 2016). It
also collaborating with the other
companies such as airlines and
many more to increase its sales.
Hilton also promotes its products
and services with the help of
magazines and websites.
People It encourage and motivates the
employees to serve best services
to the customers so this will
enhance the customer loyalty.
Employee's which are recruited
by Travel-lodge are skilled. So
they provide effective services to
customer's.
The hotel business is a service
industry and it depends on the
customers loyalty as they provide
intangible services. so Hilton
focuses on the training and
development of the employees so
that they can provide best
services to customers and all this
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boost the customers loyalty as
well brand image of the company.
Process The travelodge provides two
methods for its booking online as
well as offline. The customers
can easily booked by using
travelodge website which is a
user friendly. Many discounts
and packages are available at the
online portal of the travelodge at
various rates.
The Hilton has great brand image
in the market because of effective
supply chain management. This
decreases the operating and
distribution cost of the Hilton. The
customers can book the hotel or
hotel rooms with the help of
online medium as well as offline
also.
Physical evidence Travelodge is well known hotel
chain for its affordable price so it
has located near the entrance of
the city. As per the travelodge it
is the best place for them. Its
rooms and the facilities which
they provides also best according
to the cost which they charge.
It is well known by customers for
its luxurious infrastructure and
services which they provide to the
customers. The Hilton has
glamorous building and
infrastructure which is the
physical evidence of firm.
LO 3
P4 Development of a basic marketing plan
Marketing plan is very important part for the overall businesses development because
through it, marketing department effectively execute all the marketing activities as per the
requirement (Guillet and Kucukusta, 2019). This plan is very useful for the travelodge to expand
its existing business by introducing new plan for the company. The marketing plan of travelodge
are given as follows :-
Overview of the company:
Travelodge is one of the largest hotel brand of the UK which offer hotels and hotel
related services to the customers. It has almost 40000 guest bedrooms and near 560 hotels in all
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over the world (https://www.travelodge.co.uk/business). It is situated in all the major cities like
London, Dublin, Manchester, Edinburgh and many others. Travelodge mostly targeting regular
travellers and low income people so it provides best services to these people according to the
price. Travelodge has decided to expand its business in the international market by implementing
various strategies. They focuses on the casual travellers and low income people who easily
afford the best services of hotels. The marketing plan is a necessary for the overall business plan
of the organisation. Through effective marketing plan, marketing activities of the travelodge will
be effectively performed by marketing department of the company. It is also very useful for the
travelodge to expand its business by implementing various strategies. The marketing plan for the
traveloge is given as follows:
Objectives: First objective is to increase their market share with 50% by increasing their
market share. Moreover to expand the business at world wide level by attracting maximum
number of customers, to increase the 10% of its overall revenue of the company.
SWOT analysis
It is very important tool which is used to identify different strength and weakness of
internal environment as well as opportunities and weakness of external environment. The SWOT
analysis of travelodge are given as follows:
Strength: The products and services are offered at a affordable price which is the biggest
strength for the company because it attracts large number of customer's and also increases
revenue (Hughes, 2018). It provides rooms, family rooms, particular deals on different occasions
etc. and also travelodge situated at more than 500 places so it will make easy for the customers
to book the hotel at any suitable location according to them.
Weakness: Travel-lodge is operating their business at global level but due to partnership
with budget hotels they are not able to provide effective services. Rooms and banquet area which
is provided by them are small in size. Due to this they are not able to perform functions like
marriage, birthday celebration etc.
Opportunities: Eco tourism and green tourism has become popular nowadays so it is a
great opportunity for travelodge to expand its business and also build brand image by grab such
kind of opportunity.
Threat: It has large numbers of competitors in the market which is one of the biggest
threat for firm so travelodge need to formulate and implement effective strategies for further
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growth (Nasir and Adil, 2017). It has limited presence at a world wide level so company needs to
focus on the expansion of business at global level.
Strategies
Segmentation: Travelodge will divide the whole heterogeneous market into
homogeneous groups according to their income level because it is well known as budget
hotel. Further management segment market on geographic and demographic specifically
to target middle level customer's.
Targetting: this company will target low income people because they are more loyal and
attracted towards the various offers and discounts which are given by hotel. Target
market for travel-lodge is youth and professional people that help to earn more profits.
(Kladou, 2017).
Positioning: As travelogue focuses on the expansion, so it will focuses on the social
media and digital marketing for its promotion and also on developing various
infrastructure for expansion. Organisation position their hotels in central areas of market
Action plan
Budget allocation: The company has decided overall budget for the expansion in the
international market will be £ 10,00,00,000.
Marketing strategies:
Product: The various rooms and hotel related facilities are provided by the Travelodge
such Wi-Fi, air conditioner etc.
Price: Travelodge target low income people so it provides product and services at low
cost. As per condition of UK market price skimming strategy is execute by organisation
for their new product and services.
Place: It focuses on the international expansion mostly in all the major cities of the
world.
Promotion: It uses social media marketing for its promotion.
Forecast
Cost: Cost for the expansion of business is discussed below:
Particulars Amount (£)
Marketing 2000000
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Workforce 2000000
Equipments 2500000
Raw materials 2500000
Sale: The company has decided to boost its sale in dual figures.
Profit: The company has estimated to increase its revenue almost 10%
control: The company will use various tools for controlling the various activities of the
organisation such as key performance indicators. Several tools such as budgetary control, critical
analysis and thinking to control and monitor steps that is decided by top management.
CONCLUSION
From the above report, it can be concluded that there are several roles and responsibilities
of marketing function of the company which is required to be fulfilled so that the goals of the
company can be achieved. The marketing is an essential function in company and the inter
relation of marketing with other department is necessary so that it can perform effectively.
Marketing mix and marketing plan are two factors that is used by organisation to establish their
services and products in market through executing and implementing innovative and creative
methods.
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REFERENCES
Books and Journals
Alnawas, I. and Hemsley-Brown, J., 2018. The differential effect of cognitive and emotional
elements of experience quality on the customer-service provider’s relationship.
International Journal of Retail & Distribution Management. 46(2). pp.125-147.
Aluri, A., Slevitch, L. and Larzelere, R., 2016. The influence of embedded social media channels
on travelers’ gratifications, satisfaction, and purchase intentions. Cornell Hospitality
Quarterly. 57(3). pp.250-267.
Guillet, B.D. and Kucukusta, D., 2019. Analyzing attributes of the spa service experience:
Perceptions of spa-goers traveling to Hong Kong. Journal of China Tourism Research.
15(1). pp.66-83.
Huang, and et. al., 2018. Five-star quality at three-star prices? Opaque booking and hotel service
expectations. Journal of Hospitality Marketing & Management. 27(7). pp.833-854.
Hughes, J.C., 2018. 10. Advancing engagement: debates in the field and proposed directions for
hospitality and tourism research and practice. Handbook of Human Resource
Management in the Tourism and Hospitality Industries, p.235.
Kladou, S and et. al., 2017. The role of brand elements in destination branding. Journal of
Destination Marketing & Management. 6(4). pp.426-435.
Mahrous, A.A. and Hassan, S.S., 2017. Achieving superior customer experience: An
investigation of multichannel choices in the travel and tourism industry of an emerging
market. Journal of Travel Research. 56(8). pp.1049-1064.
Nasir, M. and Adil, M., 2017. SERVICE QUALITY MEASUREMENT IN INDIAN HOTELS:
FACTOR STRUCTURE & SCALE VALIDATION. Management Dynamics. 17(2).
Ozturk, Y. and et. al., 2019. Travel motivations of Iranian tourists to Turkey and their
satisfaction level with all-inclusive package tours. Journal of Vacation Marketing.
25(1). pp.25-36.
Suhartanto, D., 2018. Tourist satisfaction with souvenir shopping: evidence from Indonesian
domestic tourists. Current Issues in Tourism. 21(6). pp.663-679.
Tassiello, V., Viglia, G. and Mattila, A.S., 2018. How handwriting reduces negative online
ratings. Annals of Tourism Research, 73, pp.171-179.
TRIPON, I.M. and COSMA, S.A., 2018. The Evolution of Tourism Destination: A Review of
Literature. LUMEN Proceedings. 6(1). pp.268-279.
Utaminingsih, R. and Purnomo, R., 2017. Antecedents and consequences of employee
engagement. Jurnal Akuntansi Manajemen dan Ekonomi. 19(2). pp.53-60.
Vuignier, R., 2016. Place marketing and place branding: A systematic (and tentatively
exhaustive) literature review.
Vuignier, R., 2017. Place branding & place marketing 1976–2016: A multidisciplinary literature
review. International Review on Public and Nonprofit Marketing. 14(4). pp.447-473.
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