Hospitality Marketing: Holiday Inn Case Study and Analysis

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This report delves into the essentials of hospitality marketing, using Holiday Inn as a case study. It begins by outlining the key roles and responsibilities of the marketing function within the organization, including customer engagement, market research, and campaign management. The report then examines how marketing relates to the wider organizational context, highlighting its interactions with finance, research and development, human resources, operations, and sales departments. A significant portion of the report compares how different hospitality organizations, specifically Holiday Inn and Hilton, apply the marketing mix (product, price, place, promotion) to their marketing planning processes to achieve business objectives. Finally, the report presents a marketing plan for a hospitality organization, designed to meet specific marketing objectives, providing a comprehensive overview of marketing strategies in the hospitality industry.
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Hospitality Marketing
Essentials
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Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P1 Explain the key roles and responsibilities of the marketing function within the selected
organization............................................................................................................................3
P2 How roles and responsibilities of marketing relate to the wider organizational context. .5
LO 2.................................................................................................................................................7
P3 Compare the ways in which different hospitality organisations apply the marketing mix to
the marketing planning process to achieve business objectives.............................................7
LO 3...............................................................................................................................................10
P4 Marketing plan for a hospitality organisation to meet marketing objectives..................10
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
The hospitality industry consists of various sectors like accommodation,
transportation, food and beverage, entertainment, lodging etc. Marketing is an important
component for organizations operating in the hospitality industry because it helps them
in serving the customers in an effective manner (Ayuni, 2020). This is because the
industry focuses on creating innovative experiences as well as relationships with its
customers. Organization chosen for this report is Holiday Inn, which is a leading British
group of hotels. The company was founded in the year 1952 by Kemmons Wilson and is
headquartered in Denham, United Kingdom. The report includes an explanation of the
key roles and responsibilities of the marketing function within a selected organization. It
also includes a comparison between different ways in which hospitality organizations
apply the marketing mix to the marketing planning process. Lastly, a marketing plan for
the hospitality organization in order to meet marketing objectives is also included in the
report.
LO 1
P1 Explain the key roles and responsibilities of the marketing function within the
selected organization
Marketing is one of the most important functions within an organization and
involves the organization undertaking various activities in order to promote its products
as well as services. The different activities can include advertising, promoting, branding
and delivering products (Crain and et.al., 2019). The current trends in marketing involve
artificial intelligence, virtual reality, personalization, video content etc. Marketing is a
function that is expected to grow even bigger in the future. The results of various studies
that have been conducted show that a large percentage of the customers may be
managed through artificial intelligence in the future. The various marketing processes
that are undertaken by the marketing function of an organization include situation
analysis, marketing mix and implementation and control. The marketing function has
various roles as well as responsibilities within an organization. The same are explained
below in context to Holiday Inn hotels.
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Listening to customer needs – In order to establish a successful marketing
strategy, it is important to have a proper understanding of the needs as well as
preferences of the customers. The marketing function within Holiday Inn is responsible
for receiving feedback from the customers. This includes creating surveys or obtaining
information from the sales team that can help in enhancing overall marketing strategies
for the future (Dayour, 2019). This helps in gaining a better understanding about the
needs as well as preferences of existing as well as potential customers. As a result,
their needs are satisfied in an effective manner. The marketing function also performs
actions in social networks to convert users into customers.
Searching for new marketing tools The marketing function plays an
important role in being updated with the latest tools and trends in the market. The
marketing function of Holiday Inn is responsible for researching about new and
innovative marketing tools and using them in order to promote the services among
potential customers and maintain their engagement on social media platforms. New
tools not only ease out the process of conducting various marketing activities, but also
help in ensuring a high level of user engagement.
Monitoring and managing social media – This is another role which is played
by the marketing function of Holiday Inn. The employees within the team contribute to
effectively maintaining and managing the different social media pages across various
platforms like Facebook, Instagram and Twitter. The function ensures that all accounts
are managed carefully. It carries out the promotions activities in order to attract a
greater number of customers (The Role of a Marketing Department, 2020).
Innovate – Customers always look out for things that are not only unique, but
also satisfy their needs (Hall, O’Mahony and Gayler, 2017). Thus, the marketing
function works on new and innovative product and service ideas, techniques to retain
customers, promotion ideas, improvements in the conversion of their actions and
messages etc. This helps the respective organization in gaining the attention of new
customers as well as retain the existing ones for a longer period of time.
Conducting marketing and customer research – Research is an important
component for any organization as it helps in identifying as well as defining the target
markets effectively. Not only this, marketing research helps the respective organization
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in understanding the latest trends within the market in an effective manner. As a result,
the marketing function is able to devise informed and effective strategies. Besides this,
a better understanding about the customers as well as their preference is also gained.
Conducting campaign management for various marketing initiatives -
Lastly, the marketing function in Holiday Inn is also responsible for conducting different
campaigns for the marketing initiatives (Hassan and Sharma, 2018). This helps in
generating an awareness about the organization as well as the products that are offered
by it. As a result, a greater number of customers are attracted towards purchasing the
products that are offered by the hotel group.
Therefore, these are some roles and responsibilities of the marketing function
within Holiday Inn in order to attract a greater number of customers and improve the
overall profitability of the business.
P2 How roles and responsibilities of marketing relate to the wider organizational context
Marketing explain the internal and external environment process by which individual and
groups are defined that what they actually want from the existing services, from the new
products and with each other. The main role of marketing department is enhancing the
goal of organisation, and promote the business (Hastings and Domegan, 2017). One of
the responsibilities of Marketing department's is to reach out to the prospectus, clients,
investing partners and different communities and create a positive image of the
business. Role and responsibilities of marketing in terms of other departments are
explained below:
Marketing with Finance Department: The new age of marketing focus on the
awareness and images of business outcomes which includes, increasing revenues,
customers acquisitions, fixed cost maintenance, cash flow, and profit and loss accounts.
Marketing departments have lots of works for which the finance department allocate that
funds to them. And marketing department use that funds for organising them in the
different department like, promotion, selling departments. They both wants to manage
the cash flows. Holiday inn's main strategies and approaches is to commitment for
delivering long-term high standards, sustainable growth in cash flows, and high
profitability.
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Marketing with Research and Development Department: Marketing and
Research and development works with the reference of each other’s. Their
understanding to the customers’ needs is fulfil the business requirements. Research
and Development are the art of possibilities in the organisation while marketing evaluate
the customers need and demands (Hsu, Robinson and Scott, 2018). Research and
Development department adopt the new ideas and technologies for the innovation in the
existing product or for making a new product. These ideas they used are given and
suggested by the marketing team as they have the personal interaction with the
customers, and they know about the customers demand and needs.
Marketing with Human Resource Department: Human resource and marketing
department work for the development of the brand in the industry. As human resource
department deals with the employee's need and satisfaction, and maintain an image of
the company in the eyes of employees. While the marketing department works with the
customers and maintain the reputation of business there. Holiday Inn's Human
Resource and marketing department work together as the HR Department finds the
vacant position in the company and fill that position with the efficient staff. After that
these staff work as a marketing team and manage the customer's relation to the
business and give the direction and growth to the company.
Marketing with Operations Department: Marketing department works in a
manner for planning, monitoring and controlling of the projects (Kladou and et.al., 2017).
And Operation department is the one who follows that pre-feasible plan and execute in
the form of manufacturing, processing, development and delivery of the final products to
the customers. Therefore, the marketing and operations department of the respected
company work in the coordination.
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Marketing department with Sales Department: Sales department and
marketing department deals with the same prospectus of the company i.e. Customers.
Sales are the one who directly deals and meet with the customers and client and they
are on field. So they have more knowledge about the external environment and
changes occur in the external forces like customers preferences, market standard and
competitors strategies. This knowledge of sales team help the marketing team to
finalized the project report and pre planning of projects. Marketing department provide
the relevant information regarding sales and provide the training to them to how to
interact with customers, how to deals with the query of customers and client, how to
represent the company in front of the client. And with these efforts make by marketing
department, sales executive work in the field and increase the revenue of the company.
LO 2
P3 Compare the ways in which different hospitality organisations apply the marketing
mix to the marketing planning process to achieve business objectives
Marketing mix can be defined as the set of actions that an organization uses in
order to promote its products in the market. The 4Ps include Product, Price, Place and
Promotion and they help in understanding what the products can offer the customers
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(Knoblich and et.al., 2017). Besides this, the marketing mix also helps with the
execution of effective marketing strategies. The different ways in which hospitality
organizations apply the marketing mix to the marketing planning process in order to
achieve business objectives are described below -
Marketing Mix Holiday Inn Hilton
Product – A product is an
item that is primarily
manufactured in order to
satisfy the needs of a
specific target market
(Kumar and Mishra, 2019).
It can either be tangible or
intangible.
Holiday Inn is one of the
most widely recognized
hotel chains. The core
product offered by the
company is in the form of
hospitality services, resorts,
lodgings etc. All brands of
the company are more or
less the same as they offer
a convenient environment in
order to attract a greater
number of customers.
Hilton provides a variety of
hospitality services to the
customers. There are
different luxury hotel
branches wherein the
customers are provided with
the best services keeping in
mind their preferences and
needs. The hotel also offers
various membership
programs in order to attract
the customers.
Price Price is basically
the amount of money that
the customers pay in order
to purchase the product or
service. It is a very
important component of the
marketing mix.
The pricing strategy of
Holiday Inn varies from
different hotel to hotel. The
respective organization
determines the prices of its
services by ensuring that
the customers get an
access to the best quality of
services. Besides this, the
prices of the products also
vary due to the demand of
customers (Siriwichai,
Hilton targets the exclusive
segment of the society and
since the Hilton resorts are
situated at different
locations, the prices are set
accordingly. The customers
are charged exclusive
prices for their stay at any
of the Hilton properties.
Also, the price range varies
based on the different
facilities that are provided.
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2018). Holiday Inn is a
hospitality organization
whose prices follow a
competitive strategy.
These include parking,
food, extra WIFI and so on.
Place The process of
distribution as well as
placement of the product or
service is very important for
an organization. This is
because the product or
service should be
accessible to the
customers.
Holiday Inn also has a wide
presence across various
countries. The company is
specific as to where it has
operations and has adopted
a mix strategy wherein both
third party as well as direct
channels are used in order
to distribute the services.
While choosing the
strategy, the hotel takes into
account various parameters
like maintaining a consistent
growth and maximising
overall revenue.
Hilton is a leading
hospitality organization that
has a wide presence across
the world. Also, the
organisation has shown a
considerable level of growth
over the years (Tasci,
Hahm and Terry, 2019).
With the growth in the
international market, the
respective company has
also expanded its
operations. The services
offered by Hilton are
primarily focussed on
ensuring that they are of
high quality.
Promotion – This is the last
component of the marketing
mix and can prove to be
very useful in increasing the
overall brand recognition
and thus, improving the
overall levels of sales.
Holiday Inn promotes itself
as well as its services
through various online
platforms, in order to attract
customers and increase its
sales (Tripon and Cosma,
2018). Also, being an
international brand, it has
developed its website
Hilton is a hospitality brand
name that is recognized
widely across the world. In
order to promote itself, the
brand does collaborations
with various business firms.
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wherein various offers as
well as discounts are
offered to the customers.
Also, all the products as
well as services are
showcased in a very
appealing manner so that
the customers are
encouraged to make
bookings.
Contribution towards achieving organisational objective
The marketing mix of an organization assists it in developing effective strategies
and thus, gain a competitive advantage against competitors. Holiday Inn is a hospitality
brand that offers a variety of services in order to attract a greater number of customers.
Therefore, it can be said that the marketing mix will help it in understanding the needs
as well as preferences of the customers in an effective manner. As a result, the
management will be able to make more informed decisions.
LO 3
P4 Marketing plan for a hospitality organisation to meet marketing objectives
Marketing plan is the overview of a company's overall goals and objectives focused
on providing detailed strategies. It helps in framing further goals and objectives for
other departments (Weng, Gotcher and Kuo, 2017). It is done with the help of
market research and various evaluation techniques. Holiday Inn is the leading
American brand in the hospitality industry headquartered in London. It is operating
in various countries with a robust hotel chains in the world.
An action plan can be defined as a detailed plan that that outlines the actions that
are needed in order to attain one or two goals. It is important to follow the action plan in
order to attain desired goals and objectives.
Mission Statement
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The mission ODF the respective company is to increase the overall sale of the
bookings made by the customers.
SMART Objective
“To introduce a mobile application of the company in order to increase overall rate
of bookings by 20% within one year.”
Marketing Audit
Holiday Inn has been able to market its business effectively and attract a greater
number of customers over time. There are various products that are offered by the
company in the market. Apart from this, the range of resources available is also vast
because the respective company has operations across different geographic locations.
But the company faces intense competition from different brands in the market.
SWOT Analysis
It is a technique to asses company's internal and external environmental factors
which helps in framing competitive strategies. It helps in identifying company's
strengths and weaknesses as well as opportunities and threats.
Strengths - It has an effective promotion channels which helps in positioning and
high brand recall. It has a wide range of hotels which helps in fulfilling customer's
varied needs. It has been tapping new markets which helps in fast growth of the
company. It has a worldwide presence with a growing number of bookings reflects
the customer satisfaction level.
Weaknesses – It has various competitors due to attractive industry. It leads to high
rivalry in the market means less market share. It is lacking to create business in the
emerging economies. Apart from this, another weakness for the project is that there
can be new brands that offer substitute products to the customers. This way, the
customers might shift to new brands.
Opportunities – As the travelling industry is growing at a fast pace and customers
exploring new travelling destinations (Zahay and et.al., 2019). It provides a great
opportunity to the company to expand its business in new demanding markets.
Also, it can provide country specific various offers like seasonal, festive and cultural
occasions.
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Threats – Company is facing global financial crisis due to pandemic disease. It has
led to various disadvantages such as declining tourism industry, increasing
operational costs and severe competition from established local brands in the world.
Porter's Generic Forces
It is used to explore and identify various competitive strategies for gaining
competitive advantage in the market segment. Company is exploring various
strategies with the help of following forces.
Cost leadership – In this porter's strategy company focuses on becoming cost
leader with the help of reduction in its cost and benefiting economies of scale (Hastings
and Domegan, 2017). In this company has a broad market to serve.
Differentiation – In this strategy company focuses on developing its product with
the help of innovation. This further helps in adding unique value in the product.
Focus – In this company focuses on a niche market to develop high loyalty. It is
achieved either through cost leadership or differentiation. In this company serves a
narrow segment by satisfying specific needs of customers.
Choosing the best strategy for sun glasses
For selecting best strategy for Holiday Inn's new product is differentiation approach
in which organisation can introduce innovative services to its desired customer
base. This is because by adopting differentiation approach will help in reducing the
level of competition for the company and there will be better profit margins. Also, the
brand will be able to gain a high level of loyalty from the customers. As a result, the
company will be able to gain a competitive advantage against competitors.
Marketing Mix
It is used to explore market of an organisation on the basis of its varied group of
product and services.
Product - In this company has a large number of chains which helps in providing
choosing opportunity to customers (Hsu, Robinson and Scott, 2018). Holiday Inn
provides diversified services such as Resorts, Club, Vacation and various other spots.
Place - Company operates in a global market with the help of robust channel of
distribution. This further helps in introducing new services to reach a large customer
base.
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