Marketing Strategies: IHG Company and Competitor Analysis

This report provides a comprehensive analysis of the marketing strategies employed by the InterContinental Hotels Group (IHG). It begins with an introduction to marketing and its importance for business success, then dives into a detailed examination of IHG's marketing mix, comparing it with that of Marriott. The report explores the 7Ps of the marketing mix – product, price, place, promotion, people, physical evidence, and process – for both companies, highlighting their approaches to each element. Furthermore, the report evaluates different tactics used by organizations to achieve their business objectives, with a focus on IHG's use of the marketing mix and Marriott's market segmentation process. The report concludes with a marketing plan for IHG, including an executive summary, company introduction, vision, and mission, along with a SWOT analysis, segmentation, targeting, and positioning analysis, as well as details on the marketing budget and monitoring and controlling methods. The report aims to provide a thorough understanding of IHG's marketing efforts and their effectiveness in achieving business goals.

Marketing
Essentials
Contents
1

INTRODUCTION...........................................................................................................................1
TASK 2............................................................................................................................................1
P3 7P's of marketing mix used by two organisation in similar sector to achieve overall
business objectives.......................................................................................................................1
TASK 3............................................................................................................................................5
P4 Marketing plan of IHG Company...........................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Marketing is identify as a management and effective process via which services and
goods move from concept to the client (Astuti, Silalahi and Wijaya, 2015). Marketing is essential
and important concept for the organisation to increase customer's base and accomplish better
results within predetermined period of time. In this report, given enterprise is IHG Company
(InterContinental Hotels Group plc) which is a British multinational hospitality organisation.
Thus report only divided into two tasks which cover marketing mix and marketing plan of an
organisation. Both are essential and effective part of marketing which help an enterprise to
attract large number of customers easily.
TASK 2
P3 7P's of marketing mix used by two organisation in similar sector to achieve overall business
objectives
Marketing mix is identifying as an essential and important part of the company which
help them to introduce their new products and services at market. In this company use their
different promotional channels to easily attract customers. Marketing mix includes 7P's such as
product, place, promotion, price, people, physical evidence and process. Thus, there are two
organisations in same industry which are used marketing mix are determined as under:
Marriott is using the marketing mix due to changing dynamics of global hospitality
industry (Bahadir, Bharadwaj and Srivastava, 2015). Main aim of Marriott to use marketing mix
is to increase the competition among its strong competitors by improving the performance and
productivity of the services provided by company.
Marketing Mix IHG Company Marriott
PRODUCT IHG is a holding company; it means
they not produce product and contact
with the customers directly.
Company acquires the multinational
brand and enlarging their business
operations across the globe.
However, business generates their
Marriott has a broad range of
operations with nearly in 30 hotel
operations such as Classic Luxury,
Classic Premium, Distinctive Luxury,
Classic Select, Distinctive Premium,
Distinctive Select and Classic Longer-
Stays. Company aims to provide
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revenues by marketing the accurate
franchising and handling hotel
operations properly. The rooms are
big with roomy toilets attached to
them. Every room of hotel is
equipped with modern and effective
amenities like plasma TVs,
refrigerator, private bar, air
conditioners, telephones and wi-fi
connection.
excellent quality services and facilities
to its customers by these hotels. The
hotels of Marriott include Ritz-Carlton,
Sheraton, Delta Hotels, Renaissance,
Le Meridien, Westin, Aloft Hotels,
Bulgari Hotels and Resorts, Fairfield,
Residence Inn and Courtyard.
PRICE IHG created the brand or product
with the opinion to link with each
type of person around the world.
Company mainly classified their
markets into part of standard of
living of customer i.e. midscale,
luxury, and high scale and create
price accordingly (Fan, Lau and
Zhao, 2015). Pricing strategy of
hospitality sector is relying on the
brand or product that it is targeting
with.
The pricing strategies are implemented
keeping in mind of the economic
condition of consumers. Marriott
targets upper class peoples for serving
their quality and expensive services.
Company has adopted premium price
strategy for their products and services.
Company is interested in providing
quality and long lasting experience to
the customer for maintaining their
loyalty. Company believe in serving
with integrity and excellence.
PLACE InterContinental Hotels Group plc
has its properties across 100 nations
in all over the globe. Business has
majority of their properties in certain
nations such as in South America
they has more than 3781 properties
and that nation with 642 hotels in
European countries and applied by
Marriott is one of the largest hotels
chain in the world with over 5700
hotels in 110 countries. Company has a
global presence such as India, China,
Pakistan, Dubai, Argentina, Thailand,
Venezuela, Indonesia, Malaysia, Peru,
Canada, Spain, Turkey, Sri Lanka,
Bangladesh, Portugal, Mexico,
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Asia with 498 hotels. Switzerland and the United Kingdom.
Company chose the distinctive and
unique places for their hotels such as
highways, near airports and in central
and vital parts of cities where the
demand and population is high.
PROMOTION In order to promote their services and
products to customers, business
follows word of mouth. It is more
essential and significant for the
organisation to attract large number
of customers within predetermined
time period. It is also essential for the
organisation to beat competition and
achieve better results in given time
period. In today, technology is
ultimate and biggest benefits for the
organisation to effective introduce
their services to the clients.
Company uses various digital
platforms for promotion to increase its
brand image. Marriott offers various
strategies for promotion like loyalty
program in which company provides
free merchandise, vacations, gifts,
bonus, upgrading of the room for
attracting potential customers.
Company received various accolades
for their quality products and services
(Bowie and et. al., 2016).
PHYSICAL
EVIDENCE
Physical environment and
infrastructure are critical for service
delivery and service marketing. For a
IHG hotel the significance of
physical infrastructure and physical
environment is much more because
this is an effective part of the service
experience (Shaw, 2016).
The physical appearance of Marriott
hotel is quite attractive. The
Hotel ambience along with the
different types of lighting creates a
long lasting physical experience which
enables the customer to visit again.
PROCESS Processes are as essential for a
service sector as they are for a
The company ensures that the customer
get what they want. Easy and
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manufacturing or developed one.
Without correct processes or
activities a hotel chain like IHG
company cannot accomplish
efficiency and effectiveness within
predetermined time period. A luxury
hotel company wants to be extremely
process oriented (Kraus and et. al.,
2016).
convenient process will lead to
customer's satisfaction. Company
ensures hygienic and clean
environment in their hotels rooms.
Marriott works with a transparent
process which is very easy to see,
judge, operate and is user friendly.
PEOPLE The significance of the people facet
maximise in any type of services
organisation because it is persons
who eventually distribute services to
the clients. The major competitive
benefit of a service business like a
IHG Hotel comes from the persons it
employs. The workers have played
the most significant role in the
achievement that IHG has enjoyed
over the duration. As a hotel
administration chain its main
capability is derived from its people
and processes.
Company knows the necessity of
serving its customers with quality
services. The staffs of Marriott are
highly trained by the company to
provide quality and standard services to
the customers who visit the hotels.
Company has gained customer
satisfaction and trust of their
stakeholders (Lam and Harker, 2015).
M3 Evaluate different tactics applied by organisations to demonstrate how business objectives
can be achieved
The business organisations with their various organisational culture follow the tactics to
accomplish their respective business objectives. IHG utilise marketing mix in their marketing
planning procedures to attain the organisational objectives and goals within given time duration.
Other organisation such as Marriott which is contemporary to IHG use a marketing segmentation
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process to attain their organisational objectives. The market segmentation process of Marriott
involves following process:
 Initially they determine the market for enterprise, for example target market.
 Secondly, development of market segments takes place.
 Measurement of the various segments are finished for specific criteria.
 Segment process is constructed.
 The attractiveness of the segments is evaluated.
 The target markets are chosen.
 Positional strategy of the enterprise is formed and implemented.
 Evaluation as well as feedback process of segmentation.
The IHG utilise extended 7p's marketing mix in its company for the accomplishment of goals
and objectives, the process is as follows:
Product: IHG sells its products that are popular for its traditional design that is also
applicable for customers to use.
Price: Intercontinental Hotels Group apply is a competitive based pricing strategy which
will help them by increasing customers base (Srinivasan, Rutz and Pauwels, 2016).
Place: IHG sells its products or services via 2 marketing channels. The first is where it
sells instantly to its client via its online website. The another is where it trade to wholesalers who
then deal to various retailers located all over the state.
Promotion: In order to advertise products and services, IHG use different social media
platforms with a focus on Facebook, YouTube and Twitter due to the full monthly usage of
these.
Process: IHG has an online delivery procedure, where orders related to the services or
products are acceptable in the computer system as well as based on these orders, the applicable
product from the stock list is move to the delivery service provider.
People: Intercontinental Hotels Group has different number of people which are working
under its sales team that play a critical role in its marketing efforts (Lindberg, Johnsen,
Kristensen and Teräs, 2016.).
Physical evidence: IHG has an online website or application that is user-friendly and
allows visitors to view business products in broad quality picture taken from different angles.
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TASK 3
P4 Marketing plan of IHG Company
Marketing plan: It is refer as an essential and significance part of marketing which help
an enterprise to provide their detail information to the customers. It includes entire data about
business entity like, overview, vision mission, SWOT Analysis, Segmentation, Targeting and
Positioning analysis, Marketing budget, monitoring and controlling. It is an effective process that
covers some phase which is explained as under:
1: Executive Summary: Main and foremost purpose of conducting marketing plan is to
innovate new product such as services according to the customer's expectation (Lovelock and
Patterson 2015). It is more essential and important for the company to previously identify needs
and wants of customers. So in the hotel manager is responsible to design room environment as
per the customer's expectation.
2: Introduction: InterContinental Hotels Group plc or IHG is a British multinational and
biggest hospitality organisation. It was founded by Patrick Cescau, Keith Barr in 2003in
Denham, Buckinghamshire, United Kingdom. Company has approximately 800000 guest rooms
and about five thousand hotels across virtually 100 countries. IHG includes certain brands like;
Candlewood Suites, Even Hotels, Crowne Plaza, Holiday Inn, Hualuxe, InterContinental,
Hotel Indigo, Kimpton Hotels and Resorts and Staybridge Suites. Unique selling preposition of
InterContinental Hotels Group plc is very relaxed environment.
Vision: The Emerging Leaders Network is an association comprised of IHG Owners
Association and of InterContinental Hotels Group plc corporate communities members that
gives a vehicle for operators, brand team members an young owners to develop their skills,
knowledge and network with other business owners and offers younger generational viewpoint
and effort in significant decisions in maintain of enhanced owner ROI and accomplishing IHG’s
objective of “Great Hotels Guests Love.”
Mission: Mission statement of InterContinental Hotels Group plc is “To make a thriving
community for young IHG owners and to make sure image within the Owners Association and
with IHG. To give growth and enlargement chances and to promote collaborative relationships.
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3: Current Situation Analysi : This part of the marketing plan includes some aspects which are
determined as under:
STP: It is another important and main part of marketing plan. This step of marketing is also
known as company’s marketing strategy (Pike, 2015). STP stands of segmentation, targeting
and positioning of the company. STP of IHG Company is described as under:
Segmentation:
Market segmentation The group's brand Description Customer Segment
Luxury - Hotel with the biggest
level of amenities,
often small chain or
boutiques with top-
class services and
facilities and very
high rate of room.
A mix of leisure,
business, dependent
on location, often with
a biggest proportion of
international guests.
Upper upscale InterContinental Well-appointed hotels
with full, biggest or
effective quality
amenities including
bathrooms and
spacious rooms. High
room rates mainly
located in main cities
or in resorts.
Predominantly
business or enterprise
often with a effective
proportion of
international clients.
Midscale(Limited
service)Holiday inn
express candlewood
suites.
Holiday inn express
Candlewood suites
Reduce bar, fob and
meeting facilities.
Predominantly
domestic guests, both
leisure and business.
Market segmentation is segregating the marketplace on different basis, mainly the marketplace
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of hotel is segmented in the form of large number of person capacity. Market segmentation of
hotel is classified on 5 basis class. The kind of market segmented for such hotel are mind-scale,
upscale, luxury etc.
Targeting: Targeted market by InterContinental group are mainly the people with capability to
pay amount to their luxury hotels. All brand of the company are mainly luxury that provides
great experience of luxury. Hotel mainly targeted upper upscale class person with
intercontinental hotel, hotel indigo and stay bridge, upscale with crown plaza, mid-scale with
holiday inn, holiday inn spree, holiday inn select.
Positioning: IHG hotel is a luxury group in all over the globe. Even today the hotel never
compromises in their product quality. Whenever the IHG comes in the gust's mind they think
regarding the luxuries hotel in reasonable and accurate price. However, hotel doesn't target the
luxury segment of market but provides the luxury amenities in order to make them feel better
that they are the targeted or valuable guest. Therefore, the positioning of such hotel in today's
scenario or world is the hotel with better and luxury services and amenities.
SWOT Analysis: It is more effective and essential part for the IHG Company in order to know
about their weakness, strength, threats and opportunities. This analysis also essential for the
organisation to make strong and effective position in marketplace.
Strength Weakness
 Strong workforce is identifying one of
the main and biggest strength of IHG
Company.
 It is a well-established and famous
brand name in all over the globe
(Sethna, 2015).
 In the organisation, employees are
highly satisfied which will help an
enterprise to retain strong position at
 One of the main weaknesses of this
hotel is large number of hotel which
highly effected on business operations.
 Poor economic security systems.
 No economic hotel Brand.
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market.
Threats Opportunities
 Changing legal view is identifying as
main threats for the IHG Company.
 Fluctuation in foreign currency is
another threat for the hospitality sector
which highly impact on its operations.
 One of the best and main opportunities
for the organisation is to grow in travel
market.
 Changing trends in hospitality sector is
another opportunity for the organisation
to achieve better results within
predetermined time period.
4: Objectives and Goals
Marketing Objective:
 To increase sales up to 20% within 2 years time of period.
 To attract 75% of guests within 2 months of time period by application of new product
development.
 To add 10 other effective services in hotel within ½ year to maximise customer base.
6: Target Audience: In marketplace, there are different competitors of IHG Company such as
Hyatt, Starwood, Hilton, Choice, Marriott etc. All these are highly effect on business operation
and sales of company in direct manner.
7: Marketing Strategy: It is identify as a part of marketing mix which includes 7P's are
determined as under:
Product: IHG Company provide rooms facility with big roomy toilets attached to them. Each
and every room of hotel is fully equipped with modern as well as effective amenities like
plasma TVs, private bar, air conditioners etc.
Price: Pricing strategy of company is relying on the brand or product that it is targeting with.
Distribution Channel: InterContinental Hotels Grou began adding its all portfolio of
approximately 4,600 properties in the globe to Ctrip.com International, Ltd.
People: In the organisation, different employees are work with having purpose to increase sales
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and profit. The employees have played the most essential role in the accomplishment that IHG
has enjoyed over the duration.
Process: Supervising and handling a business operation in hotel is a process intensive activity.
The procures are one of the major competitive reward that IHG has over its rivals.
Physical Evidence: Physical infrastructure and environment quality is one of the major value
propositions presented by the company to its customers.
Promotion: In order to promote their services and products to the customers or clients company
follows word of mouth.
8: Marketing budget:
Monitoring and Controlling: It is identifying as an effective and important step of marketing
plan. In this manager of IHG Company play vital role for managing and controlling all activities
of marketing plan in an effective and efficient manner. Beside this, manager makes better
policies and indentifies proper sources of fund. With the help of this they can easily collect
accurate amount of capital and do their business operations and activities in systematic and
successful manner.
9: Marketing implementation plan: In order to implement marketing plan in successful
manner, company need to provide training to their those employees who have lack of
knowledge about the technology. Thus, it will assist an organisation to achieve better results
within predetermined time period.
10. Evaluation Strategy: Evaluation is an essential part of marketing: it supports an
organisation to eliminate ineffective strategies and create an overall plan that assist build their
business. By scheduling regular evaluations of marketing plan, business can save wasted
amount of capital by modifying as well as eliminating campaigns that are not reaching their
target market and garnering the response you need.
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