University Marketing Report: Travelodge Case Study Analysis

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This report provides a comprehensive analysis of Travelodge's marketing strategies, examining various aspects of its business operations and market positioning. The report begins with an overview of Travelodge, including its founding and growth, and then delves into Task 1, which explores the product and production orientation, highlighting the advantages and disadvantages of each. Task 2 focuses on the external and internal factors impacting Travelodge, including legal and technological factors and internal strengths and weaknesses. Task 3 investigates the concept of positioning and its importance in marketing strategy planning, followed by a discussion of a potential positioning strategy for Travelodge. Finally, Task 4 examines the marketing mix, including product and service offerings and the processes involved in delivering these to customers. The report concludes with key findings, summarizing the company's marketing approach and overall effectiveness.
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Marketing Communication
Name:
Course
Professor’s name
University name
City, State
Date of submission
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Table of Contents
Introduction......................................................................................................................................2
Overview..........................................................................................................................................2
TASK 1............................................................................................................................................3
a)Describe the product and production orientation,.....................................................................3
b)Identify and discuss the marketing orientation.........................................................................4
Task 2...............................................................................................................................................4
a) Identify and discuss one legal and technological factor that could impact Travelodge.......4
b) Internal environmental factors that could be considered as strengths and weaknesses of
Travelodge...................................................................................................................................5
Task 3: Marketing Strategies (LO3)................................................................................................5
a) Explain the concept of positioning and its importance in planning a marketing strategy for
Travelodge...................................................................................................................................5
b) Discuss one positioning strategy that Travelodge could adopt in positioning themselves...6
Task 4: Marketing Mix (LO1).........................................................................................................7
a) Travelodge’s product and service offerings,........................................................................7
Conclusion and key findings...........................................................................................................8
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Introduction
This report is developed in relation to Travelodge which is a hotel growing in the UK that
provides accommodation services to business segment people and tourists in major cities around
the world. The report will analyze the company’s marketing strategy and also do a PESTEL
analysis and factors that give Travelodge a competitive advantage over its peers (Andrews, and
Shimp, 2017). The report shall also discuss on the positioning strategy that Travelodge has
adopted over the years to remain a formidable company. Also discussed in this report is the
company’s products and services and the process they go through before they are delivered to the
company.
Overview
Travelodge was founded in 1985, as a company that was to offer budget accommodation to
clients in the UK. The company has 558 hotels across major cities in the world and 200 lodges in
the UK and over 42,110 rooms in UK, Ireland and Spain. Travelodge promotes the brand
through brand communication procedure and in a bid to increase its market share by more than
255, the management has decided to invest in online marketing process which are promotional
activities that are done in the digital communication process (Chen, Shih, and Chang, 2016). This
has enabled the company to promote higher sales of the lodge to clients. This has also made
booking process simple and fast.
TASK 1
a) Describe the product and production orientation, highlighting the advantages and
disadvantages of each.
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The company offers various types of products and services by which the revenues of the
company can be increased. The products includes different products for family travellers and
business clients. Restaurant and accommodation services are the core products that Travelodge
offers. The product orientation of the company is offering budget accommodation for its clients
(Datta, Ailawadi, and van Heerde, 2017). The advantage of this is that their rooms are always
fully booked because people will go for affordable accommodation. For the basic rooms,
Travelodge offers internet services, provision of a television and network connectivity to its
customers. For business class people, the company offers rooms with internet facilities, wi fi
services and a network service. The Hotel also provides meeting rooms and conferencing rooms
and also offers video conferencing.
Advantages of this is that by offering budget accommodation and high end products makes sales
to be high because all the market is catered for. Offering a wide variety of products is one of the
advantages because the hotel is able to have many customers. On the other hand, one major
disadvantage with offering a variety of products and services is that the company is not
associated with a specific product.
b)Identify and discuss the marketing orientation.
The company has developed a product strategy that caters to the needs of the market. There is
demand for low cost guest rooms at affordable prices in all major cities and Travelodge seeks to
capitalize on this. In the hospitality industry, the bargaining power of consumers especially in the
UK is regarded highly. Therefore, offering low cost will give the hotel an extra edge over its
competitors.
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Task 2
a) Identify and discuss one legal and technological factor that could impact Travelodge
business behavior and consumer buyer behavior
Most hotels in the hospitality industry have adopted an online marketing process. The
companies sell their products and services through the digital platforms. Through the adoption
of technology, it is possible for the management of Travelodge to introduce ways in which
clients can be approached. With the advancement of technology, the consumers have adopted
new ways of booking and searching for accommodation that offers good quality at affordable
prices. This has been a game changer and the hotels have adopted these technological changes.
Most hotels including Travelodge have created websites where the customers can book rooms
and view the products and services offered. This has affected how the hotel carries out its
operations as it focuses more on online advertisement to reach a many customers (Deshpande,
Berry, Faulkner, Latimer-Cheung, Rhodes, and Tremblay, 2015).
Law and legal issues are inseparable with the hospitality industry. In many countries that
Travelodge operates in, a hotel must have a liquor license that puts limits and regulates the sale
of alcohol to its customers. These laws are meant to ensure that consumers enjoy themselves
responsibly to avoid any undesirable occurrences such as accidents. For customers who want to
have a nice time in the hotel without any interruption by loud music, these laws are there to
protect them. These laws affect how the hotel operates as it must observe these laws.
b) Internal environmental factors that could be considered as strengths and
weaknesses of Travelodge business operations
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One of the strengths of the company is that it has got an effective workforce. The employees of
the company are hardworking and motivated, and this seems to be one reason why the hotels
patrons keep on coming back. Travelodge staff must undergo training on how to serve their
customers before they are let on duty. Unlike most of its competitors whose employees are not
fully trained on how to serve their customers, Travelodge has a competitive advantage on this
front. Efficiency and effectiveness is improved in the company as there is better coordination
among departments to improve the organizations performance (Fan, Lau, and Zhao, 2015).
Task 3: Marketing Strategies (LO3)
a) Explain the concept of positioning and its importance in planning a marketing
strategy for Travelodge
Positioning in marketing is an effort to influence the consumer’s perception of the brand or the
service offered. Its objective is to occupy the mind of a consumer creating a clear, unique and an
advantageous position created by the company. In Travelodge, positioning plays a major role in
marketing. It has created a picture that it is the best in the market compared to its competitors. It
is created through the use of place, price, product and place. Brand positioning in Travelodge is
very effective as it has been able to expand to over 440 locations in the countries it operates in.
A good strategy in positioning elevates the efforts of the market and helps a buyer move from
product knowledge to actual purchase of the product or service. Travelodge has created a very
good image in which its position has placed it among the best travel hotel lodges according to
numerous travel magazines. This has affected how the hotel carries out its operations as it
focuses more on online advertisement to reach a many customers. Most hotels including
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Travelodge have created websites where the customers can book rooms and view the products
and services offered. This is the best way to influence brand positioning.
b) Discuss one positioning strategy that Travelodge could adopt in positioning
themselves
One of the positioning strategy that Travelodge could use is using the price marketing and
positioning strategy. Distinguishing itself as a very affordable travel and leisure lode with quality
services. There is also inflexibility and lack of confidence which is difficult as there is no
immediate and accurate response by the customer. For business class people, the company offers
rooms with internet facilities, wi fi services and a network service. Travelodge offers internet
services, provision of a television and network connectivity to its customers. The Hotel also
provides meeting rooms and conferencing rooms and also offers video conferencing (Fill, and
Turnbull, 2016). The hotel offers the best services in which the hotel has the best and affordable
services in which the patrons are attracted. The marketing and positioning strategy can also use
its strategic location where the group of hotels has more than 440 different companies.
Travelodge has created a very good image in which its position has placed it among the best
travel hotel lodges according to numerous travel magazines. Unlike most of its competitors
whose employees are not fully trained on how to serve their customers, Travelodge through its
marketing position have become the best in attracting customers through their services.
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Task 4: Marketing Mix (LO1)
a) Travelodge’s product and service offerings, the processes they go through to deliver
their products/services to the customers
In many countries that Travelodge operates in, a hotel must have a liquor license that puts limits
and regulates the sale of alcohol to its customers. These laws are meant to ensure that consumers
enjoy themselves responsibly to avoid any undesirable occurrences such as accidents. There is
demand for low cost guest rooms at affordable prices in all major cities and Travelodge seeks to
capitalize on this. In the hospitality industry, the bargaining power of consumers especially in the
UK is regarded highly (Flora, Schooler, and Pierson, 2018). The need for the company to
increase its brand recognition is to increase its revenues through more people coming. Sales
promotion is also a channel used by Travelodge in increasing its brand recognition. The video
campaign message aims to show the level of services offered as the best there is and second to
none. It aims at endearing Travelodge to customers and potential customers to be. The physical
environment is very friendly. It has been described by travel magazines as one of the best hotels
with serene physical environments. The services provided include food and recreational
activities, physical training and outdoor activities. They go through rigorous vetting of suppliers
who provide the products. Other ways in which they ensure that there is quality service is by
employing the best employees who are qualified and have the best customer interest. The brand
image is very important and it it associated with the services it provides. Travelodge has been the
best in ensuring that its brand is very conspicuous and has the best services.
Task 4
Marketing mix
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Travelodge product and service offerings and the processes they go through to deliver their
products and the physical environment of Travelodge. Travelodge offers a variety of products
and services that help to place the brand among the finest hotels in the UK. Hotels are run as
service businesses and most hotel businesses have marketing strategies that are focused on guest
experience and different service offerings. Many hotels including the Travelodge UK have
started selling products and services as part of their overall marketing strategies.
The Travelodge UK hotel strategy is planning to incorporate the marketing strategy by finding a
way of incorporating both marketing strategies. The two fundamental differences between
product marketing and service marketing is the target audience and the message being delivered.
Product marketing in Travelodge hotel targets mass audience and the main marketing message is
to bolden the brand of the hotel and build a product recognition system (Flora, Schooler, and
Pierson, 2018).
In marketing strategies, many companies buy very costly and expensive national ad spaces
inorder to reach a large number of potential customers. Services marketing for the hotel is
focused on a specific target audience. In the case of travel lodge, the specific target audience
includes the business travelers and the leisure travelers. Most of the hotels choose either business
travelers or the leisure travelers depending on their preference. Travelodge has created a strong
brand while the branding may not be as impotant as booking for the rooms. The marketing
budget may be spent on wooing planners of meetings rather than the costly television
advertisemetnts.
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Conclusion and key findings
The brand image is very important and it associated with the services it provides. Travelodge has
been the best in ensuring that its brand is very conspicuous and has the best services. Most hotels
including Travelodge have created websites where the customers can book rooms and view the
products and services offered. This is the best way to influence brand positioning. Travelodge
promotes the brand through brand communication procedure and in a bid to increase its market
share by more than 255, the management has decided to invest in online marketing process
which are promotional activities that are done in the digital communication process. This has
enabled the company to promote higher sales of the lodge to clients. This has also made booking
process simple and fast. The services provided include food and recreational activities, physical
training and outdoor activities. They go through rigorous vetting of suppliers who provide the
products. For business class people, the company offers rooms with internet facilities, wi fi
services and a network service. The Hotel also provides meeting rooms and conferencing rooms
and also offers video conferencing (Van Den Berg, and Braun, 2017). Travelodge promotes the
brand through brand communication procedure and in a bid to increase its market share.
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References
Andrews, J.C. and Shimp, T.A., 2017. Advertising, promotion, and other aspects of integrated
marketing communications. Nelson Education.
Chen, C.C., Shih, T.H. and Chang, L.Y., 2016. Promotion Efforts by Micro-Enterprise-a Case
Study of Music Stores in Taiwan. , 8(2), pp.177-190.
Datta, H., Ailawadi, K.L. and van Heerde, H.J., 2017. How well does consumer-based brand
equity align with sales-based brand equity and marketing-mix response?. Journal of
Marketing, 81(3), pp.1-20.
Deshpande, S., Berry, T.R., Faulkner, G.E., Latimer-Cheung, A.E., Rhodes, R.E. and Tremblay,
M.S., 2015. Comparing the influence of dynamic and static versions of media in evaluating
physical-activity-promotion ads. Social Marketing Quarterly, 21(3), pp.135-141.
Fan, S., Lau, R.Y. and Zhao, J.L., 2015. Demystifying big data analytics for business intelligence
through the lens of marketing mix. Big Data Research, 2(1), pp.28-32.
Fill, C. and Turnbull, S.L., 2016. Marketing communications: brands, experiences and
participation. Pearson.
Flora, J.A., Schooler, C. and Pierson, R.M., 2018. Effective health promotion among
communities of color: The potential of social marketing. In Social Marketing (pp. 353-373).
Psychology Press.
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Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market outcome, brand
equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132).
Springer, New York, NY.
Kai, G.U.O. and Fan-Qi, X.U., 2016. Marketing Promotion Feasibility of College Students'
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