BA Business: Marketing Plan for Roomzzz Aparthotel in Chester, UK

This marketing plan assesses the current environment of Roomzzz Aparthotel in Chester, UK, and provides recommendations for strategic advantage in the competitive hotel industry. It includes a PESTLE analysis, SWOT analysis, competitor analysis, and an evaluation of industry trends. The plan outlines a product differentiation strategy based on Porter's generic strategies and uses the Ansoff matrix to identify market penetration opportunities. It also details an STP strategy, including customer segmentation (geographic, demographic, behavioral, and psychographic), target customer identification, and a positioning map. The plan sets SMART objectives and outlines a 7P marketing mix (Product, Place, Price, Promotion, Process, People, and Physical Evidence) with a proposed budget. The report concludes with recommendations for Roomzzz Aparthotel to enhance its market position and achieve sustainable growth. Desklib provides access to this and other solved assignments for students.

Running Head: MARKETING PLAN
MARKETING PLAN
Name of the Student:
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Abstract
Roomzzz Aparthotel is one of the cheapest hotels in Chester City, UK having 64 modern and
spacious apartments for the tourists and visitors. The hotel is primarily focused on its casual
visitors who are students and bachelors. However, Roomzzz Aparthotel is willing to increase its
sales percentage and customer maximisation. For this a marketing plan is required on the basis of
creating a promotional strategy and pricing specification. As doing business in the competitive
market of UK hospitality and hotel industry, it will be effective for Roomzzz Aparthotel to
follow these measures and set strategies accordingly to get strategic advantage in the competitive
market.

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Table of Contents
Introduction......................................................................................................................................4
Marketing environment...................................................................................................................5
PESTLE analysis.........................................................................................................................5
Political....................................................................................................................................5
Economic.................................................................................................................................5
Social.......................................................................................................................................5
Technological..........................................................................................................................6
Legal........................................................................................................................................6
Environment............................................................................................................................7
Swot Analysis..............................................................................................................................7
Hotel industry trends in UK.........................................................................................................8
Competitor analysis.....................................................................................................................8
Porters generic strategy................................................................................................................9
Ansoff matrix...............................................................................................................................9
STP strategy...................................................................................................................................10
Customer segmentation.............................................................................................................10
Geographic.............................................................................................................................10
Demographic..........................................................................................................................10
Behavioural............................................................................................................................10
Psychographic........................................................................................................................10
Target customers........................................................................................................................11
Positioning map.........................................................................................................................11
Smart objectives.............................................................................................................................12
Objective 1.................................................................................................................................12
Objective 2.................................................................................................................................12
Objective 3.................................................................................................................................13
7P Marketing mix..........................................................................................................................13
Product.......................................................................................................................................13
Place...........................................................................................................................................14
Price...........................................................................................................................................14
Promotion..................................................................................................................................15
Process.......................................................................................................................................15
People........................................................................................................................................15

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Physical evidence.......................................................................................................................16
Budget............................................................................................................................................16
Recommendation...........................................................................................................................16
Conclusion.....................................................................................................................................18
Reference.......................................................................................................................................19
Appendices....................................................................................................................................22
Appendix 1.................................................................................................................................22
Appendix 2.................................................................................................................................22

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Introduction
Roomzzz Aparthotel is considered to be one of the cheapest hotel in UK with a number
of complementary services that makes the hotel chain highly popular across England. According
to the hotel website, Roomzzz Aparthotel in Chester City provides 64 modern and spacious
serviced apartments accompanied with 5 stunning penthouse suites that increases the attraction
of the visitors (roomzzz.com 2019). The price rate is moderate with approximately £70 per night
(roomzzz.com 2019). As a result of that it becomes helpful for this hotel to get casual visitors
every week. Moreover, as per the official report of Roomzzz Aparthotel, it is claimed that the
hotel is enjoying a growth of 10% in the average room rate per year. This is due to the increase
in visitors and the attractive offers that the company offers to its customers.
This marketing plan aims to create a marketing plan for Roomzzz Aparthotel in order to
understand the existing environment of the organisation and some recommendations that will
help Roomzzz Aparthotel to get strategic advantage in the competitive market of UK hotel and
hospitality industry.
Marketing environment
PESTLE analysis
Political
The political environment in UK is a bit unstable recently due to the immigration and the
lack of futuristic vision and strong interference of the government on business. The average
political stability index of the country from 2014 to 2017 is .35 which is moderate and a possible

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threat for sustainable business (Referred to Appendix 1). Nevertheless, the big business houses
have the power to influence the government decision. As a result of that a balance between the
power of the government and the corporate enterprises can be seen in UK. Amidst of this
situation, it becomes an advantage for the hospitality and hotel industries to put pressure on the
government for safeguarding their interests and sustainability in the competitive market.
Economic
High competition is identified as a key characteristics in the UK hospitality and hotel
industry where big, medium and small hotels are existed and each of them have a strong
competition with each other. As UK follows a free market establishment with moderate level of
economic growth at an average of 1.5 each year therefore, there are still some opportunities that
the hotel industries of UK have in order to expand market to a moderate extent (Referred to
Appendix 2). High spending in tourism is also creating better exposure for medium and small
hotels like Roomzzz Aparthotel to encapsulate the market properly.
Social
The social factors of UK hotel industry is highly influenced by the socio-cultural
practices that create good exposure for the hotel and hospitality industry. Tradition and the
family centric vision of the UK people make it a fashion for the hotels to provide a homely
atmosphere to the visitors with high quality of service (Rahimi and Gunlu 2016). In this regard,
the tourists are also pay for the attractive discounts and quality services that will foster a good
opportunity for hotels like Roomzzz Aparthotel to bring more effectiveness into the
organisational practice. As a matter of fact, the diversity in culture also encourages the hotel
business in UK and help to maximise visitors from all around the world.

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Technological
According to Melián-González and Bulchand-Gidumal (2016) technology plays a pivotal
role in the modern hotel industry of UK in the form of online rental service through third party
websites or official websites of the company. There are certainly a number of third party sites
from which the hotels can get a number of visitors or interested customers. Furthermore, from
the research of Akbar and Tracogna (2018) it can be stated that the hotel companies in UK are
also focused on introducing high and advanced technology in their services so that high quality
services can be provided to the customers. It is also referred as a significant strategy that the
hotel companies of UK follow.
Legal
There are some fundamental regulations that the hotels are obliged to follow while doing
business in UK. The Health and Safety at Work etc Act 1974 suggests that the companies should
safeguard the rights and safety of the employees with proper guidelines prescribed by the UK
government (legislation.gov.uk 2019). Apart from that the Development of Tourism Act 1969 is
also entitled to safeguard the interests of the hotels by providing them financial and
infrastructural aids for provision of new hotels and extension, alteration and improvement of the
existing hotels (legislation.gov.uk 2019). However, the hotels are obliged to get registration for
business from the government and respective regulatory bodies.
Environment
The UK government enacts a number of environment oriented regulations that will
facilitate an effective and strong practice for the environment protection and ecological stability
across the country. The business organisations are also responsible to follow the environment
protection act of 1990 (legislation.gov.uk 2019). Moreover, there is also some regulatory

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standards for the companies to control pollution and carbon footprint. The government also
establishes different investigative agencies that are responsible to check and investigate this kind
of issues. As a result of that for the hotel industry of UK, it is essential to follow the government
prescribed regulation and environmental standards.
Swot Analysis
Strengths Opportunities
 The presence of Roomzzz Aparthotel in
UK hotel industry is highly extensive
where the company has 5 apartment-hotels
in UK cities like London, Chester and
Manchester.
 The hotel provides moderate price
services to the visitors.
 The quality of service is high and of
international standard.
 Steady development in the tourist market
of UK can create opportunity for
Roomzzz Aparthotel to revive its
business.
 The government endorsement is helpful
for Roomzzz Aparthotel to refurbish its
business strongly.
 Presence in the city locations is always
identified as a strong and good
opportunity.
Weaknesses Threats
 Lack of recognition in the competitive
hotel industry of UK is a strong weakness
of Roomzzz Aparthotel.
 The company does not have a strong
marketing plan to promote and create a
unique brand image.
 High instability in politics hampers the
steady business growth.
 The Brexit situation has a detrimental
impact on the tourism industry of UK.
 High competitiveness in the hotel and
hospitality sector creates problem for

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 Poor growth in the sales is considered to
be a problem for Roomzzz Aparthotel.
small and medium hotels to flourish.
Hotel industry trends in UK
 The provincial UK hotels are trying to attract the tourists and visitors through unique
service and homely atmosphere such as 24/7 service, complementary service, free onsite
parking and complementary breakfast.
 Most of the visitors are kept in focus about the quality of hospitality and benefits that
they get while paying rents.
 Using third party channels like Trivago for promoting hotels is identified as one of the
major trend in UK hotel industry.
Competitor analysis
Elements Roomzzz Aparthotel Rowton Poplars
Hotel
Chester Grosvenor
Price £70 per night £40 per night £370 per night
Service  24/7 room service
 Complimentary
breakfast
 Homely atmosphere
 Rooms for both
family and business
personnel
 Bar and kitchen
 24/7 services
 Complementary
tea, coffee and
wifi.
 Free onsite
parking
 Parking garage-
charge
 Restaurant and
spa
 Doctor on call
 24/7 services
 Safe deposit box
Average customers Average Moderate High
Place  Chester  Chester  Chester

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 Manchester
 Leeds
 Newcastle
 London
Porters generic strategy
Product differentiation is identified as the important generic strategy that Roomzzz
Aparthotel should focus on in order to attract more customers. It can be stated that the hotel
offers a fair and moderate pricing that is considered to be effective for Roomzzz Aparthotel.
However, there are limited services that the hotel offered and in respect to this Roomzzz
Aparthotel should focus on increase the number of services like premium services of Spa,
baggage, laundry and valet service, In-house doctors.
Ansoff matrix
The market penetration strategy has to be followed by Roomzzz Aparthotel in order to
create a stronghold in the existing market of Chester. The hotel is trying to attract customers
from the age between 25 and 35 specifically. Therefore, the diversification of products will also
help the organisation to attract more of its target customers. Promotional offers for the target
customers can facilitate an effective measure for Roomzzz Aparthotel in order to attract more
customers.

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STP strategy
Customer segmentation
Geographic
Most of the Roomzzz Aparthotel are located in the cities like Chester, Leeds,
Manchester, Newcastle and Nottingham. The management is also willing to open new hotels in
the high profile cities like London and Liverpool.
Demographic
The target customers are of the age group from 23 to 40. Both male and female visitors
are welcomed in the Roomzzz Aparthotel so that there is no gender discrimination that the hotel
follows. Apart from that mostly the customers are bachelor but some families are also visited the
hotel. The net income of the visitors is moderate with professional and part time jobs profile.
Behavioural
The target customers are switchers who are always looking for the cheapest hotels to stay
for 2 to 3 days. However, they are also fond of quality of service and have a sense of
achievement and self-expression. Therefore, the visitors are highly ambitious and determined in
nature.
Psychographic
Middle class people are the general visitors of Roomzzz Aparthotel with an aspirer
nature of lifestyle that makes them focused on the environment and quality service of the hotel.

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High quality
Low price
Low Quality
High Price
Target customers
The primary target customer of the Roomzzz Aparthotel are the bachelor people who
are liked to stay for 2 to 3 days. Most of the visitors are students who are visited the city for
educational purpose with the age group from 23 to 30. Moreover, they require a cheap but
peaceful hotel so that they can concentrate on their projects or academic practices.
Apart from that the secondary target customers are the middle class families who are
visited the cities for vacation or holidays. People from the age group of 30 40 with kids are
generally preferred the Roomzzz Aparthotel for a 3-4 days stay.
The tertiary customer segment can be identified as some professional people like
company executives who are not preferred to pay high price for one or two days. Therefore, they
opt for hotels like Roomzzz Aparthotel where they can get adequate amenities with a quiet and
peaceful environment.
Positioning map