Hospitality Marketing Report: Travelodge's Strategy and Analysis

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This report provides a detailed analysis of Travelodge's marketing strategies within the hospitality industry. It begins with an introduction to marketing and the company's background, then delves into the roles and responsibilities of marketing functions, emphasizing customer needs and market analysis. The report explores the interrelationship between marketing and other key functions like human resources, finance, and operations. A significant portion focuses on the marketing mix (product, price, promotion, place) and how it is applied to achieve business objectives. Finally, it outlines a basic marketing plan, incorporating elements like market analysis and addressing unfavorable conditions. The report uses examples from Travelodge, a leading UK-based hotel chain, to illustrate key concepts and strategies within the hospitality marketing field.
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HOSPITALITY
MARKETING ESSENTIAL
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Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
LO 1 ................................................................................................................................................3
P1- Roles and responsibility of marketing functions...................................................................3
P2- Interrelationship between marketing and other function. ....................................................5
LO 2.................................................................................................................................................6
P3- Marketing Mix to achieve business objectives .....................................................................6
LO 3.................................................................................................................................................8
P4- Marketing plan......................................................................................................................8
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13
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INTRODUCTION
Marketing refers to the activity of reaching to the end customer effectively and
efficiently. It leads with converting the end customer of the company to purchase and buy the
goods and services of the company. It is the activity of advertising and showing the products of
the company in best possible way. Travelodge is the leading accommodation service provider
which is being based in London, United Kingdom. It is the private company operating in the
hospitality and hotel industry (Travelodge, 2019). It is the largest independent brand of hotel
with over 570 hotel across the UK. Present report will address to explains the key roles and
responsibility of marketing function and its interrelationship wit various other functions of the
company. It will brief into the marketing mix of the company. It will lastly provide with basic
marketing plan of the company to meet its marketing objectives of the company in unfavourable
conditions.
MAIN BODY
LO 1
P1- Roles and responsibility of marketing functions
There are various roles of the marketing function in Travelodge where it implies with
Identifying the needs and wants of its potential customer-
Knowing what is being required on their part, conducting proper marketing research and
developing the services accordingly. It helps in catering and satisfying the needs of the target
customer more effectively. Marketers of Travelodge needs to identify its consumers and adapts
to the marketings strategy accordingly. They influence the wants of the customers as these are
being shaped by culture and personalities of individual. They role is that the needs of the
consumers are satisfied with helps of exchange process (Laurie, Mortimer, 2019).
Ensures growth, survival and reputation of the company-
A business survives because of increase in the market share and retention of customers .
Marketing of the company helps in ensuring the goals are being achieved and is customer
centric. Marketing of the company helps in ensuring the customer are being satisfied beyond
their expectation. Their role helps in ensuring and building positive brand image of the company
which attract lot of customer toward purchasing of accommodation services of Travelodge.
Widens the market-
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Marketers in Travelodge use the tools of communication such as advertising, promotion,
public relations and various others to promote the accommodation services to its potential
customers. This helps the company to build favourable and positive word of mouth and image.
Setting up of right prices-
Marketers biggest role in Travelodge is concerned up with setting up of right prices,
preparing a right approach and incorporating appropriate changes. It helps the company to ensure
that exchange process is being favourable when the prices being set are in accordance with the
same (Laczniak, Murphy, 2019).
Creating utility –
the role of the marketing function leads with creating utility of the services. It is the
ability of of services of Travelodge to cater and satisfy the needs and wants of its target
customers. Marketing of the company helps in creating place, form, time, possession and
information utility. It helps the company to achieve its desired goals and objectives.
There are various responsibilities of the marketing function of the company such as
Better offering of services-
the responsibility of the marketing function is to ensure that accommodation services
being offered by the company are able to meet and cater the needs and wants of its target
customers. Services are being characterized by inseparability and intangibility. Thus marketing
plays a active role in managing and designing the offering of services of the company (Rohm,
Stefl, Saint Clair, 2019).
Face competition –
The responsibility underlines with facing competition in the complex and unfavourable
condition. The responsibilities relates with making robust marketing strategy to face and win
over the competition and not leading to a position where the competition can easily dominant the
market position. Its responsibilities implies with the facing the competition in the manner which
don't lead in acquiring the market share of the company which has direct impact on the sales
revenue of the company.
Demand management-
Marketers of the company are highly skilled professionals who play major role in
influencing the demand for the services of the company. A demand can be in many forms such
as latent demand , no demand, negative demand, full demand , irregular demand and various
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other. Marketing responsibilities of the company helps in dealing with the different level of
demand and meeting with the same.
Discharging of social responsibilities-
Rising with the expectation of customer, pressure from the government and degradation
in the environment have forced the firm to practice higher level of social responsibilities. The
marketing of the company ensures that its services are in accordance with the environment
which helps in building positive brand image of the company.
Growth of economy-
Since marketing of the company helps in creation of demand. Demand creates
production and activities of distribution. It as a result leads with the growth of industry and
income level due to generation of employment. This increases standard of living as a result
boost up economy of the region (DiMartino, Jessen, 2018).
P2- Interrelationship between marketing and other function.
There is interrelationship between marketing and other function of Travelodge where all
the department work in accordance to ensure that targets and objectives of the company are
being achieved in favourable manner.
Relationship between Marketing and human resource.
The marketing department of Travelodge work closely with human resource . It is being
stated that since marketing is reaching to the end customer more productively. Human resource
of the company helps in ensuring that it recruits and select employees/ individuals who are being
highly talented and qualified.
By having employees which are being recruited by human resource department of the
company, it helps the firm to coordinate with marketing function to achieve the sales target and
implies to conduct various promotional activities (Felix, Rauschnabel, Hinsch, 2017). The
marketing department of the company will need to closely work with human resource of the
company to ensure appropriate skill and staffing level are in place of researching and developing
ideas to new product. In compliance with meeting with production targets, creating competent
and ambitious teams of sales to make various services of the company available to potential
customer.
Relationship between Marketing and finance.
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The marketing function of the company works closely with finance department. As
marketing is concerned with doing various activities of promotion of services of Travelodge on
various social media platforms and other means.
It requires sufficient budget to ensure smooth flow of conducting various advertisement
and other whereby the finance department ensure that the marketing function of the company is
being achieved in prominent manner. The marketing department of the company closely work
with finance department to ensure that, there is being adequate budget to cater the need
distribution, promotion and research (Rajapathirana, Hui,2018). The finance department ensures
that marketing of the company operates within its financial capabilities. It result with marketing
to work within its allocated budgets. The marketing function of the company is likely to focus on
sales revenue and building the market share, where as the finance department is more likely to
focus around covering cost, cash flows and paying back of the investment as early as possible.
Relationship between Marketing and production and operation management
This two functions of the company work closely to ensure that adequate research and
development is being planned to satisfy and meet with the needs of current and future potential
customers. They are being interconnected as it ensures that services of the company are being
of high quality and with laid down specification of its potential customer which meets with the
objective of marketing function of the company. It is being also stated that volumes of order of
accommodation services being generated by marketing department can be met with the time
scheduled required for delivery on the end of production department (Sheth, 2017).
It is likely that marketing function will set deadlines that may stretch up with the
capabilities of operation department (Marketing and its relationship with other business
activities, 2018). Marketers of the company will wish to get its services in the market as soon as
possible to get with the competitive advantage. The production will want to develop and test
services in manner which does not leads to replace defective items and replace which serves with
quality standards and helps in meeting with the objectives of marketing.
This interrelationship within various department helps in facilitating effective
organisational communication at the workplace, with better performance management. It leads
with workforce and knowledge management in the company whereby it takes into consideration
of data integrated facilitating effective flow of business operations.
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LO 2
P3- Marketing Mix to achieve business objectives
It includes Travelodge positioning by the means of having elements such as
Marketing mix Travelodge The Led Burry
Product Travelodge offers accommodation and related
services for the guest. Their products and
services include fully furnished family room
and double room with various range of
services such as WI- Fi, room services and
others, As a budget hotel, infrastructure of
firm is highly standard and suitable for short
duration. As businessman are among regular
hotel occupants, Travelodge services are being
so well designed to meet up with the needs of
the potential customers (Travelodge:
Comprehensive Business Analysis and
International Expansion Plan, 2020).
There are various range of
product which includes veg
and non veg food with multi
cuisine. It also includes
serving various beverages ,
cocktails and Mock tails
which are of high quality in
terms of taste that serves as the
basis of attracting large
number of audiences.
Price Travelodge is committed with providing best
services at the cheapest prices, targeting low
income and casual travellers. It runs with
competitive pricing strategy whereby it offers
special offers for early booking and other
special deals. This further results in lowering
down the prices of Travelodge services and
result in increase in demand as for customer
its serves as the basis to make decision for
availing the services of the company or not
(Andika, Susanti, 2018).
The restaurant implies to adopt
premium pricing strategy for
providing its various products
of the restaurant. It leads with
targeting of high end society
and potential customer which
helps with earning higher
profit margins. The price
range in the company varies
with value added services such
as extra WI- FI, parking and
exclusive services where it get
accumulated in the cost of
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guest.
Promotion To appeal to the potential customers company
leads to adopt various advertising modes
which are being suitable for its relevant market
. Besides with the rise in digitalisation and
technology, company account to promote its
services through various social media
platforms which serves a effective means of
reaching to the end customer with cost and
time effectiveness.
-Led burry chooses unique
promotional activity to help
them to stand of the crowd.
restaurant provides with
exclusive membership to its
people. The best which is
being followed in the company
to keep the track on the results
of any strategy which has
given strong feedback to
promotional activity of the
company which helps to
achieve business targets of he
company (Wu, Li, 2018).
Place It relates with the location of operation of
Travelodge which are being convenient for its
target customer to reach. It is being located in
various region which are at the ease for target
customer. This are being located near airports
which helps in meeting with the needs of
business passenger and serve to them with
there comfort (Thabit, Raewf, 2018). The
company also wishes to expand its services in
the regions where its does not have its
business operation as a result will helps the
company to acquire huge market share all
across the world.
The restaurant chain of Led
Burry are being located at the
places which are being at ease
and convenient for the
customer to visit which helps
in spreading positive word of
mouth. Led burry wishes to
expand its business in the
regions where it does not have
its business operations which
will helps in increase in the
market share of the company
People The employees of the company are being well
qualified and talented that helps with meeting
The restaurants employees are
being trained in a manner that
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to various challenging task and support
business business dynamics.
helps with meeting, greeting
and treating its customers in a
manner that they are being
highly satisfied.
Processes The process in the company is well structures
and in proper which helps in smooth business
functioning that is being followed by proper
flow of information in the company.
The guest of the restaurants
can use their own website or
app for their bookings, the
process eliminates the need for
front desk. It is being focused
on extra customer
convenience.
Physical
evidences
This implies with company rooms that are
being highly attractive and serve as best means
of increasing markets share. It also includes,
board rooms, swimming pool, banquets hall
that comprise of physical evidence of company
(Pomering, 2017).
This includes bill and others.
The physical evidence of the
restaurants includes furniture,
sofas to seat, lighting and
others. The ambience of the
restaurant also serve with the
physical evidence which is
being highly attractive.
LO 3
P4- Marketing plan
Executive summary- Marketing plan has covered various things such as laying down of SMART
objectives of company, with internal and external analysis by the means of SWOT and PESTEL
analysis. It made with understanding of STP analysis of the company with brief understanding of
marketing mix, budget and monitoring and evaluation by means of KPI and ROI.
SMART Objectives
To increase the sale revenue of the company by 15% by end of 2022.
To make investment in technology by 20% by the end of 2023. To increase the market share and customer base by 25% by end of 2025.
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SWOT analysis
Strength
It lies with affordable prices, including rates for double and family rooms with various
special deals such as early booking deals on on special occasions. The strength also lies with
infrastructure which serves as of great ambience to attract customers.
Weaknesses
Travelodge does not equip its customers with whole range of services and products where
it limit with variety of choices. The weaknesses is hotels are often described as Plain looking
and boring which as a result affect the sales revenue of the company (Han, 2019).
Opportunity-
It lies with opening its chain all across the region where it does not have its business
operation as it will serve as meeting the needs and wants of the customers.
Threat-
The threat of the company lies with its competitors who can any day come up with
strategies and policies which can threatens the business position and leads to loss of customer
base.
PESTLE analysis.
Political –
This lays down with political factors affecting the business operation such as BREXIT
where the customer and market base of the company being highly affected in unfavourable
manner
Economical –
This lays down various economic factors such as contribution to GDP , inflation, taxes,
consumer expenditure and other which are being considered by the company to ensure the
effective functioning of the business (Chernev, 2020).
Social –
This relates with building relationship with the customer and addressing to their queries
in suitable manner which leads with spreading of positive word of mouth amongst the society.
Technological-
This implies with company leading to adapt to high end technology which will helps the
business with ease in operations and saves lot of efforts in concern with time and cost.
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Legal-
This are the rules and regulation which are being prevailing in the region where business
has it operation. No compliance to which may lead with various implications of penalties,
restriction and discontinuation of the business of Travelodge.
Environment
– This includes factors which is being concerned with environment protection where it
disregards measures to reduce carbon footprints and means to effective disposable of waste
materials.
STP analysis.
Segmentation-
It relates with demographic segmentation which includes criteria such as age, gender,
income, education, occupation and other. It includes in the age group of 18-45 both males and
females with low and medium income level who are being able to afford company facilities.
Targeting-
The company leads with targeting frequent business passenger who serves as the means
of potential customers for the company and by which company major sales revenues are being
generated (Hollensen,2019).
Positioning-
Positioning leads with products and service strategy which ensures that it is being of
high quality at a price which is being affordable for its target audience. It helps in building trust
and loyalty of the customer which states the creation of position in the minds of target audiences.
Marketing mix-
Products and services-
It implies with various room services for business and normal passenger. Services of
board room to conduct various professional meeting and various other which encounters with
product and service element of marketing mix.
Place-
This are being located near airport, city location which serves as easy and convenient
mode for its passengers to reach and avail the services (Crompton,2017).
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Price-
The company set prices for its services which are being affordable for its target customers
and at prices lower that that of its competitors which serves as the means to attract customers.
Promotion-
The company opt to promote its accommodation services through various social media
platforms such as Twitter, Facebook and other which serves as cost effective means of
promoting company services.
Budget-
Amount in Euros
Marketing expenses 2020 2021 2022
Social media advertising 12000 13000 14000
Promotion through website 11000 11500 12000
Payroll expenses 25000 26000 27000
Miscellaneous expenditures 9000 9500 10000
Total marketing expenses 57000 60000 6300
Monitoring and evaluation –
The strategy will be monitored and evaluated by developing and knowing key
performance indicators such as sales revenue, profitability margins with the required objectives
and goals. Key performance indicators also includes Revenue per customer- that is increase in
customer base and revenue generated from them. Profit margin- the profit earned in past 5 years
and comparing it with present year profit. To compare increase in customer in each of new
service that is been offered.
CONCLUSION
From the above report it is being concluded that there are various things which needs to
be considered on the end of the Travelodge to have effective marketing, which will helps in
reaching to the end customer with increase in the market share. It is being briefed about with
roles and responsibilities of marketing function in the organisation. It made to understanding of
interrelationship of marketing with human resource, finance and operations in company.It has
lastly briefed with comparing marketing mix of the company and led with the detail
understanding of marketing plan of the company.
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