Motel 6's Marketing Plan: Executive Summary, PESTLE, SWOT Analysis

This report presents a comprehensive marketing plan for Motel 6, focusing on the introduction of new services such as Studio 6, an extended-stay hotel concept. The report includes an executive summary, PESTLE analysis to identify macro-environmental factors, and STP (Segmentation, Targeting, and Positioning) analysis to understand market positioning. The marketing mix (product, price, promotion, place, physical evidence, process, and people) is detailed, along with a SWOT analysis to assess internal strengths and weaknesses, and external opportunities and threats. Competitive analysis is performed, comparing Motel 6 with competitors like Red Roof Inn and Candlewood Suites. The report suggests marketing strategies, including communication plans and pricing policies to increase market share. The plan outlines objectives to expand hospitality and increase guest numbers, using a mix of online, offline, and franchise approaches. The report also addresses potential challenges and recommends innovative strategies to maintain a competitive edge in the hotel industry.

MARKETING PLAN

EXECUTIVE SUMMARY
The present report is based on Motel 6 which is coming up with the various new services
such as Studio 6, it is a big chain of extended-stay hotels and this company also offers budget
motels. For this pestle analysis will be done for determining factors creating impact on its
business operations. Also, STP analysis will be disclosed. The marketing program and
competitive analysis will help to know the competency capabilities of company in the market.
SWOT analysis has been performed for identifying the internal strengths and weaknesses and
external opportunities and threats.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
MAIN BODY...................................................................................................................................4
PESTLE ANALYSIS..................................................................................................................4
Strategy & Segmentation, Targeting and Positioning.................................................................5
REFERENCES................................................................................................................................6

MAIN BODY
Mission: To become market leader is the mission of Motel 6.
Vision: To offer high quality services to their guests and consumers and ensure that customers
get value for money
Marketing objectives
The objective of this marketing plan of Motel 6 is to raise expansion of their hospitality
by 30% till the end of 2019. Another objective of business unit is to raise number of guests by
20% before completion of this year.
Marketing mix
This is the strategic tool that helps the hospitality company in promoting the brand and
attracting number of customers towards the organisation.
 Products: In order to meet the marketing objective Motel 6 will serve customers the best
quality of services. Hospitality company will ensure offering services that have required
quality standards.
 Price: Motel 6 will take support of penetration pricing strategy, in this company will offer
its services at affordable rates. If company is provides its hospitality at lower rates, then it
would help business unit in gaining attention of mass audience. This would be the best
strategy because by this Motel 6 will be able to gain competitive advantage.
 Promotion: This is another most important element of marketing mix. Motel 6 will use
social media Facebook and Twitter to promote its various services. In the recent time
most of the people use social networking sites hence this strategy will be beneficial in
gaining attention in the new market. This is the modern approach which would give the
best result to hospitality company. In addition, Motel 6 will also promote the brand by
involving celebrities which will gain attention of guests.
 Place: Motel 6 is operating in the global market, it will use direct serving loactions in
order to provides their services to mass customers. This strategy will give the best result
to company, as cost of direct serving is manageable and firm can get the advantage of
reaching to mass audience.
 Physical evidence: Motel 6 will use attracting logos and its infrastructure in the new
location will be amazing. This tactic will give the best result to business unit and will

help the company in attracting new potential guest which will result in raising
profitability of company to great extent.
 Process: This element plays significant role in hospitality company, when organisation
purpose to reach to large customers and raise its profit then it is essential to have smooth
process so that consumers can reach to the firm easily. Hence, Motel 6 will take
assistance of website, as customer care executives will make contact with customers or
hotel guests and their quarries will be resolved immediately. This would help the firm in
creating positive image in the mind of customers and influencing their selected decision
as well.
 People: Firm will develop health relationship with its employees or staffs and will
provide them rewards for their great performance and efforts. Attractive pay scale will be
given to them and they will receive special training which will make them able to fulfil
customer demands quickly. This strategy to handle people will give positive result to the
organisation and hospitality company will be able to accomplish its marketing objective
successfully.

SWOT analysis
Strengths
 Motel 6 has strong brand image as it target potential segment. Specially company has a
good brand image in hospitality industry and customers trust the brand. As company is
introducing their best offers such as Studio 6, due to its powerful brand image it will be
easy for the organisation to create a grand market of its company. Customers expect
quality services and company is able to provide customers with quality products.
 Motel 6 offers its services through both online, offline and offer franchising. Company
has a strong customer base as its customers are across the world. It is beneficial for
company to offer new services like studio 6 i.e. 'extended stay' under its brand name as
the brand is successful in making guests familiar with its name and string brand image.
Weakness
 One of the major weakness of company is that it has poor supply chain scalability, Motel
6 are trying to expand their services globally but it is difficult for them to provides its
services at large scale (Zhao, Liu and Xue, 2019). Company has also tried to offer its
services through websites and online booking but sometimes it did not provide the
expected services to the customers that can affects company's reputation.
 Motel 6 has a drawback of offering services through old techniques instead of using new
techniques. Company utilizes the technology or effective used of manual work which in
turn increases the cost of labour.
Opportunities
 Motel 6 has an opportunity to enter in new segments as there is a demand of hotel service
which are trending in the market. Hospitality company should invest in improve the
quality of service and develop many services such as in the hotel room contained with the
coffee-maker, microwave oven, refrigerator and set of dishes, so that its market share
increases and profits can be maximized. Company can split the customers on the bases of
their interest and offer services accordingly. It will be beneficial for company to diversify
its business in different segments.
Threats
 Due to increase in the competition in every part of business has made it difficult for the
hospitality company to sustain in the market and gain competitive advantage. There are
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many competitors of Motel 6 which has made it difficult for company to maintain its
market share. Company need to bring innovation in the services or introduce new
services to reduce risk and frame strategies to attract customers and guest. (Santopuoli,
Marchetti and Giongo, 2016).
PESTLE ANALYSIS
With the help of pestle, Motel 6 can determine all the macro environmental factors
influencing its business operations related to coming up with new service i.e. studio 6 in the
market place:
 Political – Changes in government policies, taxation rules plays important role in
affecting marketing strategies of Motel 6. Also, due to high cost of structure in the global
market it has negatively affected the initiatives and marketing programmes as undertaken
for introducing new service in the market.
 Economical – Discounted pricing strategies as adopted by hospitality company for
capturing market share has resulted in loss to Motel 6 as it always focuses on delivering
quality services to its guests across the globe (Rastogi and Trivedi, 2016). Thus, it makes
the service more expensive as compared to others.
 Social – For capturing current market share and opportunities, it is very much important
for Motel 6 to formulate effective strategies for new segment of markets. By considering
the ethics, cultural norms and beliefs of the society, Motel 6 can design its services as per
these factors.
 Technological – By using better improved techniques, Motel 6 can strengthen its
business profits as well as market share by delivering quality services at budget pricing.
This will assist in decreasing the overall cost of company along with increase in customer
as well as market base.
 Legal – For gaining competitive advantages in the market, it is very much essential for
every hospitality company to make compliance of every legal as well as regulatory
frameworks (Sammut ‐ Bonnici and Galea, 2015). Motel 6 before launching its service in
the global market has to understand and adhere to all principles and regulations as laid
down by such market country.
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 Environmental – Before approaching the market with their new service, considering
environmental friendly and sustainable aspects is very essential because it can help Motel
6 in gaining competitive edge. By serving environment friendly services to environment
conscious customers, it can help Motel 6 in building customer loyalty base as well.
Strategy & Segmentation, Targeting and Positioning
Strategy & Segmentation – Motel 6 divided its customer group and market into segments i.e. on
the basis of age, sex, income, geographical area, demand level. This can help the company to
remain competitive in the market place at the global level. This helps Motel 6 in making in depth
understanding of its guest's needs or demand and thus can provide services accordingly with its
main aim of attaining customer satisfaction and improvement if required any.
Targeting – By understanding the targetted market and customer segment, Motel 6 can analyse
threats and opportunities associated with new service (Zhang and Wang, 2019). Thus, it helps in
making focus on right section of the market thereby formulating strategies for successful
execution of such service in the hospitality industries.
Positioning – With the help of marketing mix, Motel 6 can position its various new services in
the market where it wants to grab customers. By making emphasis on price, place, promotional
as well as service characteristic Motel 6 can make improvement in its own strategies and
business processes accordingly as per the guest's desire and demand.
Marketing program
Motel 6 has its several services which includes the budget motels, extended stay hotels
etc. These services are of premium quality but the company has kept its prices between medium
to high range. Motel 6 face competition in the hotel industry. But company is having very strong
market image that will help it to promote its services in the market effectively and effeciently.
Strong competition means limited market share and in order to increase its mass-market of
serivce, the hospitality company has adopted a competitive pricing policy (Boscagli, M., 2019).
Motel 6 have adopted a dynamic pricing policy and during off seasons, festive seasons and
seasonal time it offers incentives and discounts to its guests. This results in two-way benefit. The
company is able to attracting more customers. Also, it will build positive brand image of the
company with the new service. (Dewi and Darma, 2019). Subsequent, for the hospitality
company to succeed a Marketing Communication strategy has to be planned and several
recommendations and solutions are suggested for Motel 6. Communication strategy will help the
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company to analyse the possible requirement of the services that are essential for meeting the
requirement and needs of business. Program will be successful as all the factors that might affect
the business are properly undertaken by company. Plan will be implemented across the nation
and promotional strategies will help to bring awareness in the hospitality industries.
Competition analysis
Basis Motel 6 Red Roof Inn Candlewood Suites
Service The services of Motel
6 includes the
extended stay hotels
and budget motels.
Red Roof Inn is the
economic hotel chain
in the UK. It is a pet-
friendly hotel.
Candlewood Suites
includes many services
such as extended stay
hotel and fully focused
on the corporate
travellers.
Price strategy Motel 6 use prices
penetration strategy in
which the company
tries to keep the price
lower then its
competitors to get
competitive
advantages in the
markets (Santopuoli,
Marchetti and
Giongo., 2016).
Red Roof Inn uses
premium price to
capture the largest
customers from the
market and build
guests by providing
quality of services.
The customer will
prefer services with
quality standards and
pay higher price then
usual prices in market.
Candlewood Suites
offers its services by
using discounting
pricing policy. Due to
which the guests get
attracted towards the
product due to its low
price but the quality of
service is lower then
the usual.
New technology Motel 6 adopts higher
level of technological
which increases its
productivity and
enhance the
Red Roof Inn uses
new technology at
medium level because
it invests lower
amount in the field of
Candlewood Suites
uses the technology at
lower level then other
competitors in the
hospitality industries
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customers. marketing. because company does
not invest in the fields
of advance technology
adoption.
Promotion Motel 6 promotes it
services by using
digital marketing tool
at higher level due to
which people from all
over the world gets
attracted towards the
services.
Red Roof Inn uses less
digital marketing tool
it tries to offer best
services through
advertisements like
hoarding, boarding,
banners, etc.
Candlewood Suites
uses less
advertisement
promotional tool as it
makes the organisation
to have less
competitive capability
in the market from
other hospitality
companies.
Quality Motel 6 provides
higher quality services
then the normal
hospitality company
provides its .
Red Roof Inn focuses
less on the quality
standard of the product
due to which guests
gets less satisfied with
the services.
Candlewood Suites
gets satisfied with
providing low service
price due to which it is
not able to build
customer trust for the
services.
Recommendation-
It has been recommended for the company to make use of other promotional methods like social
media website. They can also make use of celebrity endorsement so that they can attract more
consumers towards them.
Conclusion
From the above study it has been summarised that company has made use of various promotional
techniques to attract consumers towards them. They have also improved their quality of services
so that their goodwill can be improved. It has helped them in establishing their market share.
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REFERENCES
Books and Journals
Rastogi, N. I. T. A. N. K. and Trivedi, M. K., 2016. PESTLE technique–a tool to identify
external risks in construction projects. International Research Journal of Engineering and
Technology (IRJET). 3(1). pp.384-388.
Sammut ‐ Bonnici, T. and Galea, D., 2015. PEST analysis. Wiley Encyclopedia of management,
pp.1-1.
Zhang, J. and Wang, R., 2019. Research on the Marketing Strategy of New Energy Vehicles in
SL Company. American Journal of Industrial and Business Management. 9(2). pp.306-314.
Boscagli, M., 2019. Competitive strategy analysis in the food system. CRC Press.
Britt, W. and et.al., 2019. National Agri-Marketing Association Team.
Dewi, M.V.K. and Darma, G.S., 2019. The Role of Marketing & Competitive Intelligence In
Industrial Revolution 4.0. Jurnal Manajemen dan Bisnis. 16(1). pp.1-12.
Zhao, J., Liu, H. and Xue, W., 2019. PEST Embedded SWOT Analysis on China's E-Commerce
Industry Development Strategy. Journal of Electronic Commerce in Organizations (JECO).
17(2). pp.55-68.
Santopuoli, G., Marchetti, M. and Giongo, M., 2016. Supporting policy decision makers in the
establishment of forest plantations, using SWOT analysis and AHPs analysis. A case study
in Tocantins (Brazil). Land Use Policy. 54. pp.549-558.
Online
PESTLE Analysis. 2019. [Online]. Available through:<https://freepestelanalysis.com/pestle-
analysis-of-mark-and-spencer-ms/>.
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