Marketing Plan for Red Roof Inn: Strategies and Analysis

This report presents a comprehensive marketing plan for the Red Roof Inn, a prominent budget hotel chain. It begins with an introduction outlining the company's background and the scope of the report. The main body delves into a PESTLE analysis, examining the political, economic, social, technological, environmental, and legal factors impacting the business. A SWOT analysis is then conducted to assess the company's strengths, weaknesses, opportunities, and threats. The report explores the positioning map and the segmentation, targeting, and positioning (STP) strategies employed by Red Roof Inn. It defines achievable objectives and analyzes the application of marketing mix tools (7Ps), including product, price, place, promotion, people, process, and physical evidence. Finally, the report offers specific recommendations for the company, focusing on enhancing customer experience and market share, and concludes with a summary of the key findings and strategic implications for Red Roof Inn's future marketing endeavors.

Marketing Plan

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PESTLE Analysis of the Red Roof Inn.......................................................................................3
SWOT Analysis of Red Roof Inn...............................................................................................4
Positioning Map and Segmentation, Targeting and Positioning.................................................5
Objectives....................................................................................................................................5
Uses of marketing mix tools.......................................................................................................6
Recommendations for the company............................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing plan is the important part of the business plan. Marketing plan is a great
program that outline the marketing and advertising efforts. It also includes the various business
activities and plans that will accomplishing within a specific period of time for achieving the
marketing objectives. Red Roof Inn is the best economy hotel chain in the UK. It is a budget
hotel chain that has approx 650 properties worldwide. This report will include the SWOT and
PESTLE analysis of the Red Roof Inn. This report will also highlight the positioning map i.e.
their market position and segmentation, targeting and positioning strategy for the Red Roof Inn.
This report will also state about the achievable objectives and marketing mix of the organisation.
MAIN BODY
As a marketing manager, will use the SWOT and PESTLE analysis for defining the
external and internal marketing environment of the organisation
PESTLE analysis will help the Red Roof Inn to identifying the major factors that creates
an impact on the business operations. SWOT analysis also assist the organisation to determining
the strengths, weaknesses, opportunities and threats in the internal and external environment.
PESTLE Analysis of the Red Roof Inn
Political Factor- Many variables in the taxation rules and government policies create their large
impact on the marketing strategies of the Red Roof Inn (Atwal and Williams., 2017). The high
cost structure of political factors in the global market can negatively affect the organisation's
marketing and initiatives programmes.
Economical Factor- Variable economic system in different countries can affect the operations
of the Red Roof Inn hotel. Interest rate, discretionary income, inflation rate and economic growth
can generate their huge impact on the performances of the organisation.
Social Factor- For the great expansion of the business of Red Roof Inn, the effective strategies
are very essential for the hospitality company. The cultural, ethical and beliefs of the UK
population can impact on the way of working of an organisation. Power structure, Class structure
and education level in the society can also increase or decrease the function of the Red Roof Inn.
Technological Factor- Technological advancement can encourage the organisation's operations
and their performances. Improved techniques can enlarge the profitability and market share of
the Red Roof Inn. This can help the organisation for delivering high quality service at affordable

pricing. Technological development by the Red Roof Inn's competitors can create a fear in the
organisation's employees and managers.
Environmental Factor- Sustainable and environmental friendly aspects helps the Red Roof Inn
to achieve their competitive advantages in a very effective way (Baker and Magnini., 2016).
Weather and changing climate can also reflect their advantage and disadvantage on the
hospitality company. Environment conscious customers prefer that hospitality organisation
which uses ecological and green products and take necessary actions related to water and air
pollution regulations.
Legal Factor- Red Roof Inn should have to compliance the various legal and regulatory
frameworks related to hospitality company. Organisation should have to follow the consumer
protection act and health and safety law to provide the great satisfactions to their guests.
SWOT Analysis of Red Roof Inn
Strengths-
Red Roof Inn has a powerful brand image in the market. It is the best budget hotel
amongst the all. Red Roof Inn has a strong goodwill and is a trustable hotel in the hospitality
companies and customer prefers the trustable brand. This organisation has no substitute in the
market. Tourist are very attractive towards the Red Roof Inn, that is the main strength of it. In
the internation market this organisation has great portion. Red Roof Inn is a flexible company
which adopt changes quickly.
Weaknesses-
Red Roof Inn are highly depended on the tourists and seasonal time, so sometimes its
create a huge loss. Red Roof Inn maintain low profit margin and added value that can generate a
diverse impact on them. This company offering services with the uses of old techniques so, its a
disadvantage for it (Kandampully, Zhang and Bilgihan., 2015).
Opportunities-
Red Roof Inn should have to take necessarily actions to expand their services because
the demand of hospitality sectors are increasing day by day. By concerning the people's health
and climate changes, Red Roof Inn can build a huge trust of the customers.
Threats-

The several competitors in the hospitality industries can be a big threat for the Red Roof
Inn. It has various competitors such as Motel 6, Candlewood suites etc. Political unrest and
terrorism are also a crucial threat for the hospitality company.
Positioning Map and Segmentation, Targeting and Positioning
Positioning Map is an important source to identifying the customer's perceptions and
potential customers. The positioning of the hospitality company is influenced by the customers'
perceptions about the organisation. Red Roof Inn has a unique position in the hospitality
industries. It has a many attributes that set them unique apart from various competitors. Its
effective positioning efforts and surveys develops their brand image in a large market. The
positioning map shows the exact position of the Red Roof Inn in the whole market.
Segmentation-
Red Roof Inn create their market and customer group on the basis of their income, age,
sex, geographical area and demand level (Kim, Vogt and Knutson., 2015). This division can
assist the organisation to expand their competitive image in the marketplace globally.
Segmentation will help the Red Roof Inn to understand the actual requirements and desires of the
customers or guests thus they can provide their services accordingly.
Targeting-
By Proper segmentation and effectively targeting the market, Red Roof Inn can analysis
the various threats and opportunities for the company. It can encourage the company to give their
major efforts in the targeted market to enhance their productivity and profitability. It influences
the Red Roof Inn to focus on correct portion of the market for the accurate execution of their
services in the market.
Positioning-
By the positioning, company can grab the exact location of the market from where they
want to captured more customers. It can help the Red Roof Inn to develop their strong position in
the hospitality industry. Red Roof Inn can expand its position with introducing many new
services that attract the customer and fulfil their desires. They can also improve their business
process and strategies with the assistance of it.
Objectives
The Red Roof Inn should aim to achieve various objectives in next 12 months

The objective of the Red Roof Inn is to expand their hospitality by 30% before
completion of this year. The company should have to decide their goal according to their market
structure (Lidstone and MacLennan., 2017). It helps the organisation to promote and inspire
towards the achieving their aim. Red Roof Inn should also decide their mission to become a
leader in the hospitality industry. Company must have to develop their vision to provide high
quality of services to enhance the customer's experience. Red Roof Inn takes essential actions to
ensure the customers that they get high value in exchange of money. Improved hospitality can
enhance the guest's trust on the organisation.
The another aim of Red Roof Inn is to increase number of customers by 20% till the end
of 2019. Company should have to use several marketing strategies to enhance customers and
their experience towards the organisation. Red Roof Inn should have to promote their services to
build customer's trust. Company should also have to take essential actions to improve the service
quality and innovate new services.
Uses of marketing mix tools
This is the major strategic tool that assist the organisation in promoting the company's
brand and encourage huge customers towards them. This can be described by 7P's. 7P's are
product, price, place, promotion, process and physical evidence.
Product
For achieving the marketing objective, the Red Roof Inn will have to offer the great
quality of service. Company should also have to ensure about to maintain the quality standard as
per the customers' expectation. Red Roof Inn will have to furnish the adequate and proper
information about their service to the guest (McDONALD., 2016). The company's service must
be capable of fulfilling and resolving the needs of the customers.
Price
If the Red Roof Inn will take necessary action to creating pricing strategy that can helps
to develop a great market. Penetration price strategy helps the company to offer their services in
a budget rates. If the Red Roof Inn offers its service at lower rates than it will gain the attention
of huge customers. If the Red Roof Inn will keep affordable price than it will encourage the
tourist or customers towards them and by this company will achieve competitive advantages in
the hospitality industry market.
Promotion

This is the major important factor of marketing mix. For the promotion of Red Roof Inn
and their services, they will use social media, twitter and Facebook. By the uses of social
networking sites, company will get huge attention from the market. The effective promotion can
improve the company's net worth and market share. Red Roof Inn will promote their services by
involving celebrities that will attract the customer's attention. In the hospitality sector, promotion
plays a major role to enhance the company's profit.
Place
The company should also have to follow the best way of providing the service. It the Red
Roof Inn will analysis the geographical area that can help them to identifying the exact location
where the customers look for the service. Red Roof Inn is expanding their business globally, that
will prefer to provide direct service to their guests (Moro and Rita., 2018). This will help the
organisation to minimize the additional cost that can occurs from the lengthy procedure and
management.
People
Red Roof Inn will develop healthy and strong relationship with its staffs by providing
rewards for their efforts and additional performances. The special training and skill programmes
will make them capable to complete the guest's demand and requirements easily. The strategy of
controlling people will increase the performance of the hospitality company and make them able
to achieve its marketing objectives.
Process
If the Red Roof Inn want to expand customers and it is very essential for the company to
create smooth process for the customers so that they can reach the organisation immediately. Red
Roof Inn will provide the customers care service to customers to resolved their queries
immediately. This can enhance the company's image and trust in the mind of consumers.
Physical evidence
It the Red Roof Inn will use unique designs and logos that will attract the guests towards
them. This strategy will increase the best results for the organisation and will help the Red Roof
Inn in capturing new potential customers. All these activities together makes the company
profitability.

Recommendations for the company
Red Roof Inn is the budget chain in the UK and it is a pet-friendly property. If the Red
Roof Inn will premium price policy than it attract the largest customer across the market.
Company should have to expand their services in a efficient way to increase their guest
experience (Neirotti, Raguseo and Paolucci., 2016). The company should take a necessary action
to innovate the many new services to encourage the customers towards them. Company should
have major focus on the high quality of services and the customer satisfaction. The company
have to decide their service prices between average range. For gaining the competitive
advantages, Red Roof Inn should have to develop a strong relationship with their guests. If the
hospitality company want to enhance their market share than company will have to take
necessary actions to create mass market for their service. Red Roof Inn should have to provide a
discount and incentive offers to their guests in the seasonal time and festival seasons.
CONCLUSION
From the above study, it is summarized that the marketing plan plays a major role for the
great success of an organisation. The best marketing program and effective competitive analysis
will assist to identify the competency capabilities of the Red Roof Inn in the market. Internal and
external environmental factors are largely affected the Red Roof Inn's operations and functional
activities. Red Roof Inn has a great market position and also it develops a trustful relationship
with the customers to achieving huge competitive advantage in the marketplace.

REFERENCES
Atwal, G. and Williams, A., 2017. Luxury brand marketing–the experience is everything!.
In Advances in luxury brand management (pp. 43-57). Palgrave Macmillan, Cham.
Baker, M.A. and Magnini, V.P., 2016. The evolution of services marketing, hospitality
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Kandampully, J., Zhang, T. and Bilgihan, A., 2015. Customer loyalty: a review and future
directions with a special focus on the hospitality industry. International Journal of
Contemporary Hospitality Management. 27(3). pp.379-414.
Kim, M., Vogt, C.A. and Knutson, B.J., 2015. Relationships among customer satisfaction,
delight, and loyalty in the hospitality industry. Journal of Hospitality & Tourism
Research. 39(2). pp.170-197.
Lidstone, J. and MacLennan, J., 2017. Marketing planning for the pharmaceutical industry.
Routledge.
McDONALD, M.A.L.C.O.L.M., 2016. Strategic marketing planning: theory and practice. In The
marketing book (pp. 108-142). Routledge.
Moro, S. and Rita, P., 2018. Brand strategies in social media in hospitality and
tourism. International Journal of Contemporary Hospitality Management. 30(1). pp.343-
364.
Neirotti, P., Raguseo, E. and Paolucci, E., 2016. Are customers’ reviews creating value in the
hospitality industry? Exploring the moderating effects of market
positioning. International Journal of Information Management. 36(6). pp.1133-1143.