BMIH4005 Marketing Essentials: Premier Inn Hotel Marketing Plan UK

This report provides a comprehensive marketing plan for Premier Inn, an international hotel group. It begins with an introduction to marketing and Premier Inn's background, followed by a detailed analysis of the marketing mix, including product, price, place, promotion, people, process, and physical evidence. The report then examines the micro and macro marketing environments, identifying strengths, weaknesses, opportunities, and threats. It also analyzes political, economic, social, technological, environmental, and legal factors impacting Premier Inn's operations. Finally, the report discusses segmentation, targeting, and positioning (STP) strategies, focusing on demographic, psychographic, behavioral, and geographic segmentation to effectively reach target markets and communicate product benefits.

Marketing Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Marketing Mix.........................................................................................................................1
2.Marketing Environment (Micro)...............................................................................................2
3. Marketing Environment (Macro).............................................................................................3
4. Segmentation, targeting and positioning..................................................................................4
CONCLUSION................................................................................................................................5

INTRODUCTION
Marketing include those activities which is required to promote buying and selling of
product and service. In include advertising, selling and delivering of product and service to
customers. This project include study of Premier Inn which is a international hotel group
operating in different locations. Premier Inn hotel group is established in 1987 by Whitbread in
UK. This project report include marketing mix along with segmentation, targeting and
positioning. This project report also include micro and macro marketing environment which
create impact on operation of organisation.
MAIN BODY
1. Marketing Mix
Marketing mix refers to a strategy adopted by organisation which include elements like
product, price, place and promotion (Cao and Tian, 2020). In service industry it include some
extended p's which are people, process and physical evidence. Marketing mix strategy helps
business in identifying strength and weakness of their business. It helps a company to be more
competitive in market and also make them more adaptable to change. This strategy increase
profit of business and ensure more collaboration in different department of organisation. Premier
Inn adopt this strategy by decision elements like product, price, place and promotion in following
ways:
Product: Product refers to an object provided by business to satisfy needs and wants of
customer (Elsharnouby and Elbanna, 2021). To survive in a market, it is important for business
to offer differentiated product which provide organisation with competitive advantage. Premier
Inn is providing services in hospitality industry including guest room, banqueting room, food and
beverage in market. Company is providing luxury hotel services which helps them to
differentiate their service from competitors and has high brand value.
Price: Prices are those monetary value which a customer is ready to pay for utilising
product and service of business (Greenway and Ross, 2017). Business need to research market
before deciding price for their product and service as customer compare different products on
basis of their price and attribute. Using right pricing strategy is important for organisation as it
helps them to capture large market share. Premier Inn hotel group are offering variable pricing
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for their product and service according to different season. As when demand is high in market,
they are offering high prices whereas offering low price in low demand level.
Place: Place refers to area in which business is offering their product and service.
Different goods were sold in different market depend of type of product (Homburg, Theel and
Hohenberg, 2020). Place provide accessibility of product and service to customer. In hospital
industry, organisation does went to customer but customer came to organisation to get product
and service. Decision of place in his industry include location in city or resort area. Hotels use
direct and indirect method for serving to their customer, direct method include sales through
sales team, phone calls, print media advertisement whereas indirect method include travel agent,
event planner.
Promotion: Promotion strategy are those which helps to increase sale of product and
service. It include different tool like advertising, personal selling, sales promotion etc. To
increase sale of product and service of hospitality industry, it is important to communicate to
customer. Tools used by hospital industry include television commercial,brochures, hotel
websites etc. Premier Inn are using commercial advertising as this promotion tool increase brand
awareness of their organisation and increase number of customer for organisation.
People: People in marketing mix include all those person who helps in delivery of
service and influence behaviour of buyer (Jabbar, 2016). These people are employees of
company, customer and role of these people depend on nature of service. Service is influenced
by people, their dressing, personal appearance, attitude and behaviour of customer. For delivery
of service, existence of service provider is essential as service is based on provider. Premier Inn
hotel has hired different employees which provide service to their guest, all staff are well dress
up and groomed which influence behaviour of customer towards organisation.
Process: Process refers to flow of activities, mechanism, procedure of delivery of
service. This process helps organisation to provide experience and evidence of service. Some
services required proper procedure which is followed by customer. This process helps company
to make service more tangible and helps them to provide their vision to customer along with
development of market position. Premier Inn has proper procedure to provide services as firstly
they take booking from customer, after arrival of customer register necessary information about
customer. After all these formalities they provide keys to them and staff drop them to their room.
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Physical Evidence: Environment also play important role in delivering of service as this
is the place where customer and service provider interact with each other and use tangible
components which enhance experience and satisfaction of customer (Kadekova and
Holienčinova, 2018). Physical evidence are important for organisation as it provide opportunity
to firm for sending strong message about purpose of organisation to customers. Premier Inn
hotels group are providing hospitality service in market in their hotel. They use various physical
components to enhance their service level including towel, bedsheets, pillow, soap, lotion and
other necessary things. These physical evidence helps them to enhance customer experience and
make them different from those of competitors.
2.Marketing Environment (Micro)
Marketing environment refers to environment in which an organisation conduct their
operation (Kamboj and Rahman, 2017). This environment include internal factors and external
factors which affect operation of business. Micro environment are those which present with
organisation as this analysis include strength, weakness, opportunity and threat which helps
business to be prepare to face those factors that can affect operational activity. This analysis of
internal factors are as follows:
Strength Weakness
Premier Inn is a company which has won
award of British travel and is largest hotel
group of UK. The company is providing
premium services and offers to their customer
in online booking.
Premier Inn is a company which is providing
their service in hospitality industry where there
are high competition between organisations.
The company does not have global presence as
they they has many international chains.
Opportunity Threats
The company has more opportunities in market
place as they has more strategic tie ups which
helps company to increase their market share.
Company is also investing in digital marketing
and provide brand value through experience of
customer.
Increasing trend of private room in hotel is
threat for Premier Inn. Backpackers hostel are
of low cost than hotels which is threat for
luxury hotels like Premier Inn.
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3. Marketing Environment (Macro)
Marketing environment affect operation of business in many ways and include both
macro and micro environment factors (Kannan, 2017). Macro environment include external
factors and is not controlled by organisation. Macro environment factors include political,
economical, technological, social, legal and environmental factors which can create impact on
operation of organisation These factors which affect operation of Premier Inn in following
manner:
Political: Political factors include government inference in business in an economy
(Karlsson, 2016). It also include trade restriction, political stability, laws and regulation in an
economy. Political environment in UK is more collaborative and positive as economic
contribution of hospitality industry in UK is high. Premier Inn are not facing difficulty from
political factor in UK as government is providing supportive environment in UK. But Premier
Inn is an international hotel chain which can face problem from political factor in different
country.
Economical: Economic factors include factors like growth in economy, interest rate,
inflation rate which can affect operation of organisation. For instance, interest rate affect cost of
organisation along with growth and expansion of business. Government of UK is providing
support to business in UK as it helps in growth of their economy and also create employment
opportunity in country. Economy of different country is different and doing international
business provide benefit to Premier Inn as company can access to different financial resources in
different company.
Social: Social factors are those which include aspects of culture, growth rate, age, career
attitude, income distribution (Katsikeas, 2018). Changes in life style and standard of living has
bring changes in all over world related to taste ad habits of people. Customer are becoming more
aware and prefer goods and service with low cost and improved standard of living. Premier Inn
are considering various aspect which helps them to influence behaviour of people including easy
accessibility, preference of branded product, security, customer feedback. All these factors helps
company to increase their satisfaction level and increase social value of their product and
service.
Technological: Technological factors are those which include automation, activity
related to research and development. These factors helps an organisation to provide competitive
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advantage and also increase their level of efficiency along with reduced cost. Premier Inn using
advanced technology as technology in hospitality industry is not required in operation but in
electronic appliance. Company has used latest technology appliance in their hotels.
Environmental: Environmental factors are those which include whether, climate change
that can impact on tourism and hospitality industry directly. As demand in hospitality increase
during season time, Premium Inn are adopting yield management strategy in which they charge
high price during peak demand time.
Legal: Legal factors include various laws and regulation in a country including labour
law, discrimination law, health and safety law etc. (Petersen and Schmid, 2021). UK has increase
their wage rate which can increase cost of organisation conducting their business in UK.
Increasing cost also increase price of product and service. To avoid this factor, Premier Inn is
following all rules and regulation of UK economy. Company has formulated policy structure
which helps them to follow all rules.
4. Segmentation, targeting and positioning
STP analysis is a tool which include strategy of segmentation, targeting and marketing
(Polonsky, 2017). This will helps an organisation to assess their product and service and allow
them to communicating benefits of their product to customer. STP is a type ODF model of
marketing which helps in segmenting total market in different parts and target to a particular
segment which helps to create a position of their product and service. This strategy is a effective
marketing strategy and it helps in making small parts of market which helps to more focused on
customer. Premier Inn adopt STP strategy in following manner:
Segmentation: Segmentation refers to process of dividing total market into different
parts. This segmentation is based on geographic, behavioural, demographic and psychographic.
Customer in segments possess same habits, taste and preferences. Premier Inn are using
segmentation strategy which helps them to provide their message to customer and helps in
identifying tactics of marketing. This helps to design company ads according to their target and
attract customer towards their business. Premier Inn has segmented total market on basis of
business, families. There are four type of market segment which include demographic segment,
psycho-graphic segment, behavioural segment and geographic segmentation which are as
follows:
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Demographic Segmentation: Demographic segmentation are those segmentation in
which organisation discriminate customer on the basis of their age, gender, family status, income
level etc. These factors helps business to discriminate in business to customer market.
Organisation discriminate their customer in business to business market on basis of size, job
function and industry basis.
Psycho graphic Market segmentation: In this type of segmentation, factors involved
are value, attitude, personality trait, priorities etc. These factors are difficult to identify as they
are subjective. To identify and understand these factors, organisation require proper research.
Behavioural segmentation: In this type of segmentation, organisation discriminate
market on the basis of purchasing habits, user status, spending habits and brand interaction. This
segmentation require to identify customer action.
Geographic segmentation: This type of segmentation is that which is divided in
different part on the basis of geographic location like country, city, climate etc. Geographic
location is type of area in which company serve in market.
Targeting: Target market refers to customer group which is targeted by business to serve
their efforts and resources (Tatar and Eren-Erdoğmuş, 2016). In each target market, organisation
put customer with similar taste and preference. Premier Inn has target travellers and backpackers
to serve their product and services. There are fur type of targeting strategies adopted by any
organisation which are as follows:
Undifferentiated marketing: Undifferentiated marketing strategies are those in which
organisation treat all customer as same. It does not focus on segmentation rather than creating
same marketing mix for every customer. This strategy helps an organisation to increase its
market share and increase sales of product. This strategy is also called mass marketing which
helps business to spread their message to large audience and communicate about use and benefit
of their product and service.
Differentiated marketing: Differentiated strategy are those in which organisation
prepare different strategy for different market segment. In this company provide different service
for different segment. The main focus of this strategy is to increase market share in each
segment. This strategy helps them to develop different item in market place. Main object is to
increase competitive advantage for organisation. It helps to reduce price competition in Premier
Inn hotel and helps to make their service unique.
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Focused or centric: Customer centric strategy helps organisation to differentiate their
product and service in terms of benefit and feature of product. Whereas customer focused
strategy are those in which company is focused on asking feedback from customer and serve
need to customer effectively.
Customised marketing: Customised marketing are those which are satisfying special
needs of customers. It is adopted by companies which are selling expensive and value product in
market . It can also adopted by customer which are offering unique product in market. These are
developed to satisfy special neds of customer and increase brand image of company.
Positioning: Positioning refers to place that an organisation or brand occupy in minds of
customer (Singh and Singh, 2018). These helps organisation to create a distinct image of their
product and service in market. Premier Inn is providing budgeted product and service to their
customer which helps them to differentiate their product from other market player in industry.
Company is providing premium service within budget of customer which them competitive
advantage and increase brand awareness in market. Premier Inn are adopting following
positioning strategies which are as follows:
Product attribute and benefit: Company can differentiate their product and service in
terms of association certain certain characteristics with their brand. This will helps organisation
to create distinctive image of company brand name and their offering.
Product price: Product price refers to amount which a customer is ready to pay for using
company's product and service. Company can offer competitive price this will helps them to
increase sale of their product and service in market.
Product quality: Quality is set standard of product and service which helps them to
differentiate their offering from other company. This quality helps organisation to get
competitive advantage and make their image distinct in minds of consumer. It helps organisation
to attract customer towards their brand and service.
Product use and application: This strategy helps business to link their product with
specific use as this will make their product different and helps customer to know use and benefit
of product and service.
Competitors: Competitor strategy is those in which an organisation differentiate their
product from those of competitors. A organisation can differentiate their product in different
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ways including price, cost, quality and service. Differentiating product and service from
competitor helps to create distinct image in organisation in minds of customer.
CONCLUSION
From above mentioned project report, this can be concluded that marketing refers to
those techniques which helps an organisation to increase sales in market place and provide goods
and services to their customer. Marketing mix refer to strategy of organisation which include
product, price, place and promotion. Product include offering of company in market which
include both goods and service. Place refers to area in which an organisation is providing their
offering or include channel which is used by business to sell their product and service. Price
include monetary value which customer are ready to pay for their product and services whereas
promotion include promotional tool of business which include advertising, personal selling etc.
Firm also adopt STP analysis tool which include segmentation, targeting, positioning for their
goods and service. There are micro and macro marketing environment which affect operation of
organisation. Micro analysis include internal analysis like SWOT which stands for strength,
weakness, opportunity and threat. Firm also include PESTEL analysis which include different
factors like political, economical, social, technological, legal and environmental factors.
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