B629- Managing 2: Marketing and Finance
EMA
Problem related to marketing mix and performance measurement
By Yennifer Pereira (PI: A8407709)
August 2012
Contents
Word count: 2415
Section:
1. Description of my organisation 2. Description of the marketing mix 3. Identify, analyse and summarise a problem relating marketing mix 4. Solution 5. Identify, analyse and summarise a problem relating performance management 6. Solution 7. References
1. Description of my organisation
Travelodge is budget hotel brand that was launch on the UK in 1985 and currently operates more than 450 hotels in Ireland, Spain and the UK. The company is growing very fast and is planning to operate more than 70,000
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Processes: Travelodge ensures that all our hotels provides the same process across all the company, by ensuring that customers are deal correctly, that layout looks fairly similar, that we provide same services across the hotels and that we always are providing the correct service.
Physical evidence: This is the evidence that our customer sees when he comes into a Travelodge and sees that staff all in uniform, everything branded, currently this is our main problem that not all the hotels look the same due to the layout and most of then require a brand update.
3. Identify, analyse and summarise a problem relating marketing mix
Identify
Our main focus in Travelodge is pleasing our customers by providing affordable, clean and fresh rooms, but as Travelodge been open since 1985, is difficult to provide the same standard in every hotel, the main problem that we currently have is that our hotels look completely different due to the different refurbishment that we had have over the years, as Travelodge opens a new hotel a new trial runs in that hotel and is use for a few years. Currently when a customer walks into a room in Travelodge they never know what to expect as no all Travelodge’s look the same.
Analyse
As a customer you expect when you walk into a hotel that will look as similar to the other hotels of the same brand, but when a company has been open for more than 26 years is difficult to maintain the same standard across their hotels. Travelodge is
This report will be providing a detailed analysis of the existing Budget Hotel market, and how to improve the competiveness of the Travelodge UK, the second largest Budget Hotel chain in the United Kingdom, Second Premier Inn. This report will contain the following, a profile of the organisation’s current target market, which will include demographic, psychographic, geographic and behavioural variables. That will then be followed by a well-referenced and well-researched PEST analysis that will highlight the most important and relevant factors that could have an impact on the business. Once the pest analysis has been completed, the report will be concluded by recommended changes to the marketing
For instance, in the hospitality industry, the Hilton brand symbolises high-end properties, elevated quality of service and a unique guest experience. Brand name and brand image are essentially two factors that differentiate companies which operate in the same industry and market. Therefore, the brand name must be unique. Hotel companies like the Hilton have established strong national brands and seek to use them globally with an intention of increasing profits. Once its established as a global brand, the company has successfully created an international image that can lead to increased efficiency through branded marketing efforts and cost savings on a much larger scale. Nowadays with an increase in international travel, the competition among international hotel corporations is becoming a lot more competetive. Those tourists that travel to foreign countries tend to stay in one of the known hotel brands and their standardised quality of service. Hotel chains are motivated to maintain a high rate of global expansion as a key marketing strategy of creating brand loyalty (King,
Physical evidence includes everything tangible like Hyatt’s furniture in the rooms to brochures and business cards to employees. As service cannot be touched customers need some tangible things to get prove about the place they staying in. They evaluation starts first of all from some advertisements or official Hyatt web page. Then it comes to the location. Hyatt Regency Birmingham is in the city centre, so it good for them. That people highly appraises that they can easily get there as well as they can easily get wherever they need from the hotel, it is close to ICC and NIA and has bridge to Symphony hall, what a lot of customers find really important. Hyatt Regency hotels have their recognizable logo, that you cam see from different locations of the city as Hyatt Regency hotels usually are extremely high. According to the expedia web page, many guests find that there is excellent standard rooms and cleanliness, even though some of them say, it could be more modern. Nevertheless staff in the hotel always is very pleasant and welcoming. Employee satisfaction and guest satisfaction are clearly related, because if employee is not satisfied, he cannot give service a customer. So employees play a significant role in the business operation and are undividable part of the service and product. If we look to the Hyatt we would see the things that attract people
Marriott is renowned for its elegant and comfortable hotels and resorts. The company caters to a targeted customer base, ranging from the frequent corporate business traveler to the family enjoying their occasional weekend get-away. Marriott has continued its rise in the lodging, contract services, and restaurant industries. The company continuously strives to meet the needs and wants of its customers while strategically maneuvering the rigors of today’s competitive and ever-evolving market of glamorous destinations and convenient services. In order to remain relevant in a highly-competitive environment, Marriott must strike that successful balance of minimizing costs, and gaining and effectively
InterContinental Hotel Group is a hotel company with over 350,000 employees working in 100 countries. It has over 5,000 hotels globally. One of IHG’s brand is the Holiday Inn, the Holiday Inn’s international headquarters are in Americas, Europe and Australasia. In London, UK, there are 72 hotels with the Holiday Inn or Holiday express brand. The InterContinental Hotel Groups structures their business into sections depending on what the hotel’s aims are. For example, the Holiday Inn Resort is abroad with outdoor swimming pools, it’s a very holiday place when you can spend 1-2 weeks there where the Holiday Inn is a place to stay over for one night or even the weekend. These two hotels have the same brand but different aims.
Travelodge UK However, Travelodge also stated that it was no longer viable to operate 49 hotels (8% of the estate), for which the company would now seek new operators.
Kotler and Armstrong (2010). The marketing mix is often crucial when determining the MOGH unique selling points and how to market them correctly.
Fomule 1 is one the few hotels that operate on two principles not always associated with the hotel industry, “Standardization and Technology”.
"Through our sports associations and our targeted marketing campaign, we are introducing the Travelodge brand as the chain that is as passionate about our guests' lifestyles as they are," said Andy Maguire, Travelodge Hotels senior director of marketing.
Premier Inn is the name of a British Budget Hotel chain running the largest hotel brand in the United Kingdom. Hotel chain is running 690 hotels with more than 50,000 rooms built in different countries. The hotel chain listed in London Stock Exchange in 1987 with brand name of “Whitebread” and started trading of its services under the chain of “Travel Inn” in order to compete with travellodges. Business operation of Premier Inn is not only limited to city centers but also covering suburbs and airports locations Hotel chain is following the expansion and acquisition policies since the time of its inception and acquired hotel chain named as Premier Lodge in 2004 (Whitebread, 2013). This acquisition increased the number of hotels and the profit as well. Premier Lodge was running with 141 hotels and contributed 70% of the total profit of “Whitebread”. Target market of the hotel chain is not only the leisure visitors and families but also the world business class seeking countless business and travel facilities. Award winning business services, comfortable sleep on king size beds and delicious breakfast are further adding value for the hotel chain while elevating the status of Premier Inn to be the first choice of families and business class to take their stay decisions at Premier Inn. The ambitious and high paced profitable progress of the Hotel chain is opening new ways of expansion and development. The hotel chain is therefore, planning to increase around 45% i.e. 75,000 rooms
The Hotel is situated in the bustling East Cork market town of Midleton, located just 14 miles (15 mins drive)
The buyers of the services of travel agencies are consumers, that is, individuals and businesses. For this industry we are dealing with a small degree of concentration, due to the wide range of services.
The following report was derived from the primary use of secondary sources, in addition to telephone contact with hotel representatives. Secondary sources included research from the Internet, industry books, company marketing communications, trade and general business newspapers and magazines, among others. Through all the sources, relevant data and information was extracted into the report's appendices. After individual analysis and group discussion, the following report was devised. The mandate of this report is to provide a macro examination of the luxury hotel industry and specifically the future outlook of Four Seasons Hotel and Resorts, Inc.
The report focused particularly on the following hotel chain Hilton Worldwide. Hilton legacy began in 1925, it was founded by Conrad N. Hilton. The first hotel was built in Texas and had 40 rooms; today Hilton is one of the most respected brands in the world. The company owns, manages or franchises a hotel group of some of the most famous and highly regarded hospitality brands worldwide, including Hilton, Conrad Hotels & Resorts, Double Tree by Hilton, Embassy Suites Hotels, Hampton, Hilton Grant Vacations, Homewood Suites by Hilton and the Waldorf Astoria Hotels & Resorts. With 4000 hotels and 650,000 rooms in 90 countries Hilton Worldwide is one of the world’s leading hotel. (Hilton Worldwide, 2013)
As a primary worldwide provider of travel-related services such as rentals, lodging, conference facilities, and timeshare exchange, Wyndham Worldwide has overcome inconsistent branding strategy, unstable mergers, and acquisitions, as well as the 2008 economic recession to retain its top position in the industry. An internal and external analysis of the company, opportunities, and threats faced by the firm, its competitive advantage, and a strategic focus reveal the issues that need to be addressed henceforth for it to remain relevant in an increasingly competitive global market. The paper provides a problem statement, alternatives, and recommendations that Wyndham Worldwide can engage.