Marketing Analysis of Travelodge and Marketing Mix Comparison Report

This report delves into the marketing strategies employed by Travelodge, a UK-based travel and tourism organization. It explores the key responsibilities and roles of the marketing function within Travelodge, examining its business environment and interrelation with other departments such as finance, R&D, and HR. The report compares Travelodge's marketing mix with that of Cosmos Holidays, another travel and tourism company, analyzing elements like product, price, place, and promotion. Furthermore, it develops a strategic marketing plan for Travelodge, utilizing the 7Ps of marketing to formulate strategies for achieving business objectives and enhancing customer satisfaction. The report also offers a critical analysis of the marketing function's importance and significance in the organization's overall success.

Marketing Essentials
for Travel and
Tourism

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1. Key responsibilities and roles of marketing function .........................................................1
M1. Roles of marketing in marketing environment context .....................................................2
P2. Interrelation of roles and responsibilities of marketing with other departmental functions 2
M2. Significance of interrelation between departments ............................................................3
D1. Critical Analysation..............................................................................................................4
TASK 2............................................................................................................................................4
P3. Comparison between ways in which organisations uses marketing mix..............................4
M3. Evaluation............................................................................................................................6
TASK 3............................................................................................................................................6
P4, M4. Market Plan...................................................................................................................6
D2. Strategic marketing plan by using 7P's of marketing ..........................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing refers to a business process in which relationships between customers are
created and developed for the purpose of providing them satisfaction by producing quality goods
and services. This report is based upon Travelodge which is a UK based travel and tourism
organisation that provides hotel and hospitality services throughout UK. It is the second largest
hospitality sector that deals in United Kingdom (Travelodge's, 2019). This report covers
significant responsibilities and roles of the functions of marketing within Travelodge and in
context of its business environment. It also covers interrelation of marketing with other
departmental function and how they together achieve organisational objectives. Further it covers
comparison between various ways in which travel and tourism sector uses marketing mix
elements in its business process for attaining business goals. At the end of this report, a
marketing plan is developed for this organisation for formulating certain strategies to meet
business objectives.
TASK 1
P1. Key responsibilities and roles of marketing function
Marketing refers to actions and business processes that helps in selling and promoting
goods and services in the target market. Marketing concept focuses upon attaining business
objectives by developing a company which is more effective than its competitors. It is developed
in four concepts such as production, product, selling and customer concept. In production
concept, customers purchase those products which are inexpensive. In product concept, they
prefer products that has innovative features and is of better quality. In selling concept, customers
do not buy products by which an enterprise puts a lot of efforts in achieving competitive edge in
market. In customer concept, company focus upon customers and provides goods and services as
per their demand.
Marketing function plays a major role in formulating various business strategies and in
achieving various objectives of an organisation. In each sector, marketing is important as it helps
in making customers aware about current products and services provided by the company. In
travel and tourism sector, marketing has a wide role in promoting and advertising certain
services to its customers and in formulating an effective market plan and strategies as required.
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In Travelodge, there are various roles and responsibilities played by marketing function in its
various business process which are elaborated as follows-
Promotion- It refers to the procedure of making targeted customers aware about the
existence of a specific product or service. The basic role and responsibility which is played by
marketing in an organisation is to promote and advertise company's products and services among
its customers. This function helps the customers in knowing about the availability of a particular
product or service (Anche, Hozouri and Mehdizadeh, 2014). Travelodge uses both online and
offline promotional measures in promoting its services among customers. It has a mobile friendly
application that makes consumers aware about deals and offers offered by this company.
Product development- It refers to introducing and launching a brand new product in a
target market. Although product is developed in two ways, either by introducing a new product
or by making changes to the existing product by adding certain features to it. Marketing plays an
important role in developing a product by indulging itself in market research. By conducting
market research, Travelodge can develop its products in accordance as per the changing demand
and preferences of its target audience (Aswathappa, 2013).
Marketing strategies- Marketing function is also responsible in formulating various
marketing strategies by analysing marketing environment. These strategies refers to long term
fundamental approach of market planning that helps the business in achieving its competitive
advantage. An organisation can choose from various strategies such as market penetration,
diversification, product and market development. Travelodge keeps on updating its services by
adopting product development strategy by appropriately analysing current market conditions.
M1. Roles of marketing in marketing environment context
The role and responsibility of marketing is not limited to the organisational context but it
is more than this. Marketing plays a major role in analysing business environment and
identifying customer's tastes and preferences thereby. On that basis, it formulate various business
strategies and provide products in accordance. In Travelodge, the role of marketing in
environmental context is elaborated as follows-
Market research- It refers to the activities and actions for the purpose of gathering
information about tastes and preferences of customers. Marketing plays a major role in
conducting market research and in identifying customers preferences.
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Monitoring marketing environment- Marketing plays a major role in monitoring
marketing environment by interpreting and assessing important data and information which is
collected by environmental scanning (Chang, Yu and Lu, 2015). Marketing helps in monitoring
marketing environment and analyse customers tastes and preferences and then produce products
and services in accordance.
P2. Interrelation of roles and responsibilities of marketing with other departmental functions
All the organisational functions are interlinked with each other for the purpose of
achieving business goals and objectives. In Travelodge, all the departments are closely
interlinked with each other and healthy relation is formed among them. Interrelation of
marketing with other departments are elaborated as follows-
Marketing and Finance department- These departments are closely interlinked with
each other for the purpose of achieving overall objectives of a business. In travel and tourism
organisation such as Travelodge, marketing function plays an important role in identifying tastes
and preferences of customers. It also helps in developing needs among consumers in regards to
specific services by using certain technology of promotion. Also, finance function ensures that
the company in appropriately utilise financial resources in order to carry on its activities of
promotion (Gengler and Mulvey, 2017). In short, marketing department helps in creating
demand in market and financial department provides monetary resources for the purpose of
fulfilling these demands by developing suitable services. It provides funds to marketing
department for carrying out its activities in proper manner.
Marketing and R&D department- In Travelodge, both research and development and
marketing department plays various functions and conducts business processes together in
achieving various goals of business. Marketing helps in generating needs for certain services
among the consumers and R&D department helps the company for developing technology and
innovation. If R&D will not able to generate different packages to its customers than marketing
will become ineffective. Similarly, if marketing will not convert these technologies into an
appropriate product than research and development department will become useless.
Marketing and HR department- In context of Travelodge, both the human resource as
well as marketing function plays a major role in achieving various aims and goals of a business.
Marketing department helps the HR department in advertising the job vacancies that are
available within an organisation through internal and external advertisement. (Glanz, Bader, and
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Iyer, 2012). It also helps the organisation in positioning its brand image in the mind of
consumers. On the contrary, HR department provides certain training and development
programmes to marketing team which improves their performance. It is very important for this
enterprise to develop a balance between these two functions in order to achieve business goals.
M2. Significance of interrelation between departments
It is very important for an organisation to have interrelation among its departments in
order to achieve overall business objectives in a more appropriate manner. In Travelodge,
marketing function helps in creating a demand in market and finance function helps in providing
financial resources to convert that demand into a product or service. Similarly, marketing helps
the HR department in promoting certain vacant position available within an organisation by
indulging in advertisement. R&D department helps marketing in providing certain innovation
and technology that helps it to develop a suitable service that meet overall customer's demands.
So, it is very important for Travelodge to form balance between all its department in order to
achieve its overall business objectives (Gummesson, Kuusela, and Närvänen, 2014).
D1. Critical Analysation
Marketing is one of the most important function of an organisation and it do not only
responsible to the functioning of its own department but it also plays major role in other
departmental functioning. It helps the HR department in its recruitment procedure by promoting
vacant job positions among candidates. R&D department helps marketing by providing latest
technologies which it can use in order to develop a service that will meet customer's demands.
Finance department helps marketing function by providing monetary and financial resources. In
short, all these departments are closely dependent upon each other and a dis functioning of one
department will make other ineffective.
TASK 2
P3. Comparison between ways in which organisations uses marketing mix
Marketing mix is described as mixture of factors which are controllable by the company
for influencing its customers to buy its products or services. Different organisations uses
marketing mix in a different manner which is dependent upon what objectives a company want
to achieve (Henriksen, 2012). Here, marketing mix of Travelodge is compared with marketing
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mix of another travel and tourism organisation named Cosmos Holidays, that is a UK based
travelling company.
Marketing Mix Travelodge Cosmos Holidays
Product This organisation provides
hospitality and hotel services
all over UK and other
countries. The major services
offered by this company are
modernised rooms, king size
beds, full licensed bars, cafes,
free Wi-Fi, and so on.
It offers certain holiday
packages to its customers
which includes travelling, food
and accommodation services.
Price Travelodge uses moderate
pricing strategy in its services.
It offers budget friendly hotel
rooms that any person can
afford.
It uses low pricing strategy
which includes budget friendly
travelling packages which can
be easily affordable by middle
class person (Jobber and Ellis-
Chadwick, 2012).
Place It has around 560 hotels across
UK and Ireland. It also
provides its services in US,
Canada, Spain, Asia,
Australia, and New Zealand.
It provides its services in many
countries along with UK such
as Italy, Spain, Britain and
Central Europe.
Promotion It basically uses online
promotional measures for
promoting its services in the
target market such as social
media, its official website,
YouTube, and so on.
This organisation utilises
digital promotional measures
to advertise its services such as
Television, YouTube and
social media. It also provides
information about its services
in its official website.
People Travelodge has around 11,000 Its people includes its digital
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employees that work together
for looking out for its
customers. They provides
customers satisfaction by
solving their queries and
developing services that meet
customer's expectations
(Möller and Parvinen, 2015).
marketing team that keeps
updating its travelling
packages and certain deals in
its official website. Also, the
tourist guide makes a good
impression in customer's mind
which results in enhancing
company's goodwill.
Process It has a simple procedure for
delivering its services among
customers. Consumers can
easily book hotels from its
official website or mobile
application as it provides
online payment method.
Its process is simple and easy
to understand. Customers get
information about various
deals and packages offered by
this company from its website
or other areas. Than, they can
simply book packages as per
their preference and pay
online.
Physical Evidence Its official website is its
physical evidence. Moreover,
its beautiful and attractive
ambience of its hotel rooms,
bars, and cafes can also be
considered as its physical
evidence.
Its online website and
headquarter can act as a
physical evidence for this
company (Nagle and Muller,
2017).
M3. Evaluation
The elements of marketing mix are under the control of an organisation and its very
important to use them in an appropriate way to achieve business goals and objectives.
Travelodge uses marketing mix properly for developing suitable services that meet customer
expectations. It uses services as per consumer's demand, offers them by using moderate pricing
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strategy, distribute its services in many countries and promote them by using both online and
offline measures. It has many employees that works together for achieving its overall objectives.
Customers can easily enjoy its services as it offers online booking and payment facility.
Moreover, its attractive ambience and website helps in building its physical evidence.
TASK 3
P4, M4. Market Plan
Market plan is a component of overall business plan which is formulated to achieve
business objectives in an effective manner. A basic market plan includes mission, vision,
objectives and budget (Tanner and Raymond, 2015). For achieving overall objectives of
marketing plan, tools like STP model and SWOT analysis is prepared. It is a written document
that helps in determining certain activities if business which is involved in executing particular
marketing objectives within a specified period of time.
Overview
Travelodge is a British based travel and tourism organisation that provides hotel and
hospitality services to its customers at multinational level. It has more than 560 hotels all across
UK, Spain and Ireland. It offers certain services such as hotels, bar, cafes, restaurants, and so on.
Recently this organisation is planning to launch self check-in and self check-out service in order
to attract its customers (Anche, Hozouri and Mehdizadeh, 2014). For this purpose an effective
market plan is developed in order to formulate this service in effective manner.
Mission
The mission of Travelodge for launching this self check-in and check-out service is, “To
become people's favourite hotel for value that provides high satisfaction level to its
customers.”
Vision
The long term vision of Travelodge is, “ To become the number one travel and tourism
industry in the world and be ahead of its competitors.”
Objectives
The objectives of Travelodge towards launching self check-in and check-out service are-
 To increase its market share up to 10% in up coming one year.
 To increase the sales and profitability of this company up to 15% in up coming year.
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STP Model
It is determined as a wide market framework that helps in segmenting market into various
categories, target customers and market, and position company's products and services in
customer's mind (Aswathappa, 2013). For the purpose of formulating marketing plan for
Travelodge, this model is used as follows-
Segmentation: It includes breaking down market into various categories which is done in
various forms such as demographic, psycho graphic, geographic, etc. Travelodge is launching
self check-in and check-out service in which it has segmented its market geographic segment and
is providing it in its major areas such as UK, US and Canada.
Targeting: It is the most crucial part of STP model and it helps the company in aiming at
customers and market that will most profitable for its business venture. In this approach,
company targets its customers and market to whom it is developing certain products or services.
In context of Travelodge, it is targeting this service of self check-in and check-out to those
customers who has a very busy life and do not have much time to indulge themselves in check in
and check out proceedings.
Positioning: It refers to creating an image of company's products or services in
customer's mind. It is the process that includes what a marketer do to the minds of its targeted
audience. Travelodge has positioned its self check-in and check-out service as a service which
will help the customers in saving their time.
SWOT Analysis
This analysis refers to all internal factors such as company's strengths and weaknesses
and all external factors such as threats and opportunities which will have large impact upon an
organisation (Travelodge's SWOT analysis, 2019). In order to formulate this marketing plan in an
effective manner, this company can use SWOT analysis and it will also help Travelodge in
identifying its competitive advantage. SWOT analysation of this company is done as follows-
Strengths Weaknesses
Travelodge offers a variety of services to its
customers such as online booking, double
room, family rooms, etc. which are budget
friendly. Its Travelodge green programme
helps in reducing carbon foot print in its
Although it offers many services to its
customers but it do not offer certain services
which are room, porter and concierge services.
This enterprise has very limited presence in
international markets and it pays attention only
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services. into UK and Ireland markets (Chang, Yu and
Lu, 2015).
Opportunities Threats
It can renovate its interior by using latest
technology and innovation. Moreover, it can
also expand its services in more global markets
to earn profits.
Its basic threats are its competitors that
provides similar services to its customers.
Moreover, there are increasing number of new
entrants that are entering into market with
updated services.
Budget
MARKETING BUDGET (£)
PARTICULARS Ist Year IInd Year IIIrd Year IVth Year Vth Year
Initial money 4000 7200 13300 15360 18770
Investment 9400 10300 13830 31730 13450
TOTAL 13400 17500 27130 47090 32220
MARKETING OUTLAY
Promotion 5746 2659 5893 2875 2211
Sales publicity 1465 900 2652 1392 1150
Direct selling 2235 1900 4951 900 4434
TOTAL 9446 5459 12296 5167 7705
Monitoring and Controlling
It refers to keeping an eye to all the activities of marketing in order to ensure that
business is able to achieve its overall objectives as per the market plan. As Travelodge is
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launching self check-in and check-out services than it is the responsibility of this organisation
that all the activities are evaluated in an appropriate manner and marketing plan is executed
within a given budget. It must ensure that adequate promotional measures are utilised in order to
make customers aware about the existence of this new service.
D2. Strategic marketing plan by using 7P's of marketing
Strategic marketing plan refers to a procedure by which a company developed certain
plans and strategies for achieving business goals and objectives (Gengler and Mulvey, 2017). For
Travelodge, strategic marketing plan is developed as follows that uses marketing mix in order to
achieve business objectives-
Product The service offered by Travelodge is self
check-in and check-out service that will help in
saving time of both customers and front office.
Price The price is charged for the membership card
is £50.
Place This service is available in its branches located
at UK, US, Canada and Ireland.
Promotion For promoting this service in target market,
company is using online promotional technique
such as social media, YouTube and television.
People Its digital marketing team will provide all the
necessary and relevant information relating to
this new service in its official website (Glanz,
Bader and Iyer, 2012).
Process Its procedure is simple. In this customer have
to purchase a membership card which is
available online and a card number is provided
to them. After this, customer is required to go
to a hotel, put all the relevant details and a
room will be allotted as per customer's online
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booking.
Physical Evidence The physical evidence in this service is the
receipt which will be given to its customers
whenever they indulge themselves in this
service (Gummesson, Kuusela and Närvänen,
2014).
CONCLUSION
From the above report, it has been concluded that marketing plays an important role
within an organisation as well as in marketing environmental context. It helps in making
customers aware about the existence of products by promoting them in the target market. It also
help in identifying tastes and preferences of customers by indulging in market research. It serves
its functions in organisational departments. It helps HR department in advertising if any kind of
job vacancy is available within an organisation. Further, it concludes that company must utilise
all the elements of marketing mix in an appropriate manner to achieve business objectives. At the
end, market plan is essential for formulating marketing strategies in a proper way.
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Online
Travelodge's SWOT analysis. 2019. [Online]. Available Through:
<https://toughnickel.com/industries/Travelodge-Comprehensive-Business-Analysis-and-
International-Expansion-Plan>.
Travelodge's. 2019. [Online]. Available Through: <https://www.travelodge.co.uk/about/our-
company/>.
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