Marketing in Hospitality: Premier Inn's Strategies & Environment

This report provides a detailed analysis of Premier Inn's marketing strategies within the hospitality sector. It begins by describing the marketing process and discussing key concepts like customer-focused marketing, using Premier Inn as an example. The report assesses the influence of macro and micro environmental factors on marketing decisions and evaluates the relevance of the consumer market. It also explores the benefits of market segmentation for Premier Inn, examines the marketing mix variables, and analyzes pricing policies. Furthermore, the report plans an advertising campaign, evaluates the role of sales promotion and public relations, conducts market research, and proposes a different media for marketing Premier Inn's luxury suites to business executives. The conclusion summarizes the key findings and recommendations for enhancing Premier Inn's marketing effectiveness.

Marketing in Hospitality
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Table of Contents
Introduction.................................................................................................................................................4
LO1: Task 1.................................................................................................................................................5
1.1: Describe the marketing process and discuss the concepts of marketing, including customer focus
marketing using examples from drawn from your chosen company........................................................5
1.2: Explain and assess the macro and micro environmental environments that influence the marketing
decisions in the hospitality sector............................................................................................................7
1.3: Evaluate the relevance of consumer market in the hospitality sector................................................9
1.4: Discuss why it is useful to segment the consumer market and identify appropriate market segments
to target using your chosen hotel as an example....................................................................................10
M1: An effective approach to examine and research the micro and macro environment of the chosen
organization is applied and effective judgement is made on its impacts................................................12
D1: Conclusion regarding the appropriate market segments are arrived at through synthesis of facts and
ideas and justified..................................................................................................................................14
LO2: Task 2...............................................................................................................................................15
2.1: Examine the marketing mix variables applicable within the hospitality and assess the importance
of marketing mix components or variables and discuss how you would use them in repositioning your
hotel.......................................................................................................................................................15
2.2: Analyse the role of various pricing policies and strategies used by businesses using your chosen
organization as an example....................................................................................................................17
M2: Appropriate techniques and methods are used to analyze the various pricing policies and strategies
in relation to the chosen hospitality organization...................................................................................18
LO3: Task 3...............................................................................................................................................19
3.1: Explain what is meant by promotional mix and evaluate its role in your chosen organization.......19
3.2: Plan an advertising campaign for your chosen organization with appropriate promotional
objectives and justify.............................................................................................................................20
3.3: Analyse the role that sales promotion and public relations play in your organization....................21
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M2: Relevant theories and or models are used to identify and link the hotel’s promotional strategies in
responding to the market conditions......................................................................................................22
M3: Appropriate structure and approach are used to carry out the advertisement campaign.................23
LO4 : Task 4..............................................................................................................................................24
4.1: Discuss the relevance and importance of undertaking a marketing research in your chosen
organization...........................................................................................................................................24
4.2: Undertake market research for an appropriate product or service...................................................25
4.3: Analyse and propose a different media for marketing your hotel using its luxury suites to business
executives..............................................................................................................................................27
4.4: Evaluate and discuss the implementation the proposed marketing plan in your organization.........28
D2: Substantial activities and projects are planned, managed and organised to undertake marketing
research and to present the findings with charts....................................................................................29
D3: New and innovative thoughts are applied in the analysis of a range of media and choosing the
appropriate one for the campaign..........................................................................................................30
Conclusion.................................................................................................................................................31
References.................................................................................................................................................32
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Introduction
In this report, the marketing process has been discussed along with the macro and micro
environments which affect the performance of Premier Inn. The relevance and importance of
consumer market have also been evaluated along with the benefits of market segmentation to
Premier Inn. The report also analyses the different components of marketing mix along with their
importance and at the later sections, an advertising campaign has been drafted in order to
promote Premier Inn Business segment offered by Premier Inn to its customers. The report also
contains a discussion regarding the role of sales promotion and public relations and in the last
part, market research has been conducted and the results have been analysed.
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LO1: Task 1
1.1: Describe the marketing process and discuss the concepts of marketing, including
customer focus marketing using examples from drawn from your chosen company
Marketing Process
This involves ascertaining the opportunities, selecting the target market, and developing the
marketing mix and managing the overall marketing strategy. This process is followed to
understand the needs of the customers and provide those services so that customers’ are attracted
towards the accommodation and other facilities provided by the company (Milichovský, 2015).
There are four steps of marketing process are:
Figure 1: Strategic Marketing Process
Source: (Smartsheet, 2018)
Situation Analysis:
In this, the firm analyses the various opportunities that can be utilised to fulfil the customers’
needs as well as identify the abilities of the firm to provide those facilities. This analysis enables
the management to ascertain the external and internal factors in which the firm operates by using
the management tools such as PESTLE and SWOT analysis (Adewale, et. al., 2013).
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Marketing Strategy:
After analysing the opportunities that can be utilised to provide the facilities to satisfy the
customers’ needs, a strategic plan to pursue these opportunities has to be developed. The
marketing strategy involves marketing segmentation, selection of the target market, positioning
the product or service, and value proposition to the target market.
Marketing Mix Decisions:
The marketing mix strategies are developed in order to take the crucial decisions for:
 Development of the product or services: specifying, designing, and providing the initial
services
 Developing pricing strategy
 Strategy of providing these services in all locations
 Strategy for promoting these services
Implementation and control:
At this stage, the new services have been designed and offered to the customers. The results of
developing the new services have to be monitored closely and changes have to be made quickly
so that the there is a continuous process of improvement. This helps to improve the quality and
efficiency of the services provided to the customers.
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1.2: Explain and assess the macro and micro environmental environments that influence
the marketing decisions in the hospitality sector.
Marketing Environment:
This involves the internal and external factors or variables that influence the decision-making
process of the management in order to maintain the healthy relationship with the customers as
well the stakeholders involved in the business. The marketing environment in the hospitality
industry consists of two factors, which are micro and macro environments (Yam, 2016).
Figure 2: The Impact Of Micro and Macro Environment Factors on Marketing
Source: (Oxford College of Marketing)
Micro-environmental factors:
These factors are those which are closely associated with the company and management has the
ability to control and manage them for achieving the business objectives. These are suppliers and
vendors, stakeholders, customers, employees and staff working in the hotels, research and
development, and market. The management takes the decisions in order to minimise the
expenses incurred and control the wastages so that quality of the services can be enhanced and
the services can be provided at lower costs. For instance, while selecting the suppliers, the
management identifies those suppliers who can provide the materials and equipment required for
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the hotel at lower costs. This ensures that the services can be provided at lower rates without
compromising in the quality of these services.
Macro-environmental factors:
These factors also influence the managerial decision-making process but the firm cannot manage
and control these factors. These are political, economic, natural, technological, social and
cultural factors. For instance, economic factors play an important role in the ability of the people
to spend motivates them to avail the best services and if the income is lower customers may
prefer not to avail few services. These impact the revenues generated by the company. Also,
political stability of the region attracts a number of visitors and the visitors avoid visiting those
regions where there is political turmoil. Both these factors cannot be controlled by the company
but play a significant role in the performance of the company (Ahmad, 2012).
Hence, Premier Inn has to consider all the above factors before finalising the marketing strategy
and develop the plans in order to maintain the competitiveness of the firm even during the
uncertain market conditions.
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1.3: Evaluate the relevance of consumer market in the hospitality sector.
The consumer market refers to the direct utilisation of the services by the customers rather than
reselling those. The strategy of the hospitality industry is directed towards providing the services
directly to the customers. The various services are designed after ascertaining the tastes and
preferences of the customers since the priority of the customers varies according to their
perceptions (Premkanth, 2012). The relevance of the consumer market has been evaluated as:
Long-term relationship: The strategy of Premier Inn is to build a long-term relationship with
the customers by providing the quality services to them. This enables the company to sustain in
the market for a longer period of time.
Satisfaction: The strategy of the company should not just focus on catering to the needs of the
customers but to exceed them. This enhances the satisfaction levels of the customers which
results in increasing the value and goodwill of the company.
Customer-orientation approach: Since customers enable the company to generate revenues,
the policies and strategies developed by the firm should direct towards providing the best
services to the customers. This involves training the staff to provide effective services and also
the ways in which the customers’ queries can be answered professionally.
Value chain: This aims at providing the best services at lowered rates which enables to enhance
the competitiveness of the firm (Premkanth, 2012).
Decision-making: The management has to take appropriate decisions by ascertaining the
changing trends and customers’ tastes and preferences.
The firm has to design and develop the services that have to be provided to the customers after
ascertaining the above points so that only those services can be provided which attracts
customers.
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1.4: Discuss why it is useful to segment the consumer market and identify appropriate
market segments to target using your chosen hotel as an example.
Market Segmentation:
This can be defined as a process in which the customers are divided into sub-groups on the basis
of their tastes and preferences or characteristics of the consumers. The customers are divided in
order to design the services provided by Premier Inn by targeting a specific group of customers
so that the expectations of the customers can be met. This ensures that the firm develops the
ability to provide the services to all groups of customers in order to enhance their satisfaction
levels (Premkanth, 2012).
Advantages of Market Segmentation
The advantages of segmenting the customers into different sub-groups by Premier Inn can be
evaluated as:
Enhances the quality of the services:
In a competitive market scenario, it becomes difficult for Premier Inn to satisfy the customers
since every customer has different expectations and providing the limited services may result in
generating lower satisfaction levels and may result in generating lower income.
Up-selling of services:
The services designed can be promoted at different stages which enhance the goodwill of the
hotel group. For instance, the customers’ who arrive for the business purposes may be provided
with additional services such as portable chargers and providing additional refreshments during
conferences (Premkanth, 2012).
Strategies related to price differentiation:
The various products can be developed as per the amount paid by the customers to avail the
services. For instance, Premier Inn offers the facilities depending on the type of accommodation
facilities opted which are segmented into regular, deluxe, and premium. This ensures that the
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costs are fixed depending on the types of services provided and also enables to control the costs.
This also helps to prevent over-charging on the services availed. The premier services can be
charged at higher levels since customers’ will have the ability to spend which enhances the
revenues generated by Premier Inn.
Higher Market Share:
By providing the additional services, Premier Inn will be able to generate more revenues as well
as enhance its goodwill and reputation. This enables the firm to explore new opportunities for the
business and to explore new markets.
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M1: An effective approach to examine and research the micro and macro environment of
the chosen organization is applied and effective judgement is made on its impacts.
Premier Inn has to develop the strategies for ascertaining the micro and macro environmental
factors in order to effectively promote the services. In order to analyse the micro environment
SWOT analysis can be conducted (Madsen, 2016).
Strengths Weakness
 Brand Name
 Availability of the required resources
including manpower
 Expertise in the hospitality sector
 Government support towards
promoting tourism in the region
 Ability to generate higher revenues
 Inability to expand its operations to
other foreign
 Limited number of options to
customers while availing services
Opportunities Threats
 Expanding to other foreign markets
 Ability to provide additional services
 Profit realisation
 UK is one of the prime attractions of
the customers
 Growing competition in the hospitality
sector
 Fluctuations in the tastes and
preferences of the customers
 Technological changes
The external factors can be ascertained by using PESTLE analysis, which is:
Political: There is a political stability in the region and hence, visitors are attracted towards the
region and the government has implemented measures to provide safety and security to the
customers.
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