Describe about the Marketing Plan of Travelodge?
This marketing plan is developed in relation to Travelodge which has been a growing company in UK providing accommodation services to tourists and business segment people. This marketing plan is aimed at creating awareness of Travelodge by way of focusing extensively on the digital communication media. In order to perform this marketing planning process, the analysis specifically focuses on a critical external and internal environment faced by Travelodge and this is followed by the identification of target audiences, segmentation, and brand positioning strategy for Travelodge. Finally, an assessment of the marketing mix strategy through the application of 7Ps would be performed for Travelodge.
This section analyses the external and internal environment condition facing Travelodge by way of applying theoretical tools. Based on the analysis of the external and internal environment of the company, appropriate segmentation and marketing mix strategies can be devised. The external environment analysis through Porter five forces and internal environment through SWOT analysis in relation to Travelodge is performed as follows:
Porter Five Forces: The evaluation of the external environment facing Travelodge is performed as follows:
Bargaining Power of Buyers: The bargaining power of buyers is regarded as higher in the industry because the case analysis indicates that Travelodge is required to undertake different major strategies in retaining its customers. The higher competition level especially in respect to low budget hotels in UK also enhances the bargaining power of buyer (Pride and Ferrell, 2010).
Bargaining Power of Supplier: The bargaining power of supplier is lower in the industry because of the availability of large number of suppliers offering the low cost accommodation and dinning facilities in UK. This ultimately reduces the bargaining power of suppliers such as Travelodge in serving its customers (Grönroos, 2010).
Threat of Substitutes: In respect to the threat of substitute is concerned, it is regarded as lower because the accommodation and dinning services are essential to tourists. Tourists coming from different parts of the world would definitely need accommodation services and thus, the availability of substitute is lower (Cheverton, 2005).
Rivalry among Existing Firms: The threat of rivalry within existing firms is significantly higher in the tourism industry. The presence of accommodation service providers in both the leisure class and business class is higher across UK and such higher competition level necessitates businesses like Travelodge to consider for additional strategies in marketing to attract potential customers.
Threat of New Entrant: The threat of new entrant is regarded as lower in the industry, and the major reason leading to such lower threat of new entrant is mainly medium to higher because it does not require huge investment to be made. A firm with lower overall investment could consider for providing accommodation services targeting lower to medium customer groups (Grönroos, 2010).
SWOT Analysis: SWOT analysis aimed at evaluating the internal performance of Travelodge is performed as follows:
Overall, the external and internal environmental analysis of Travelodge has revealed significant level of findings about the company. The findings can be utilised in addressing the most efficient marketing strategies for Travelodge in achieving higher success and growth in its performance.
Segmentation, targeting and positioning (STP) is a crucial marketing analysis tool that enables marketers in remaining highly focused with respect to their goals. It is essential that these tools must be appropriately considered so that appropriate customers can be served with the company’s offerings and higher growth can finally be possible. In respect to Travelodge, the consideration of these specific marketing tools is performed as follows:
Segmentation: Segmentation of the market is essential so that it is clear to the marketer that which market in particular is required to be served by them. Segmentation is mainly the classification of the entire market or it indicates the division of entire market into submarket so that they can be targeted efficiently. In respect to Travelodge, it provides accommodation and restaurant services, and as a result, the market can be segmented into business class and leisure class customers. Business class customers could be those who comes to a country to attend their business purposes and requires accommodation services. The leisure class customer includes those customers who come to a country with the purpose of relaxation and spending their time in leisure. These are the two types of customers that cover up the entire tourism and accommodation industry in particular (Sengupta, 2005).
Targeting- Targeting of specific customers is essential so as to achieve higher business growth. Targeting strategy requires specific targeting of customer within the business segments as available in the industry. In respect to Travelodge, the services as offered by the company are specifically aimed at satisfying both the business class and leisure class customers. The rooms within the hotel are designed in a manner aimed at satisfying the requirements and expectations of both these customer types. Hence, the best possible targeting strategy as available to Travelodge is to target both the leisure class as well as business class customers. However, an analysis of the case study on Travelodge further indicated that the company specialises in offering services to medium and low end customer groups. As a result, the demographic profile of the customers that needs to be targeted is average customers that look good service at reasonable price. This particular market segmentation comprising of business class and leisure class customers could be targeted for the accommodation and dinning services as offered by Travelodge. The international customers in particular should be targeted by Travelodge which could be done through digital marketing media tools by the company (Aaker and Joachimsthaler, 2000).
Positioning: Apart from the selection of appropriate target market, the marketing strategy requires appropriate positioning of the performance of Travelodge within its customers. Positioning is aimed at creating an image in the minds of people, and the strategy in relation to positioning in respect to Travelodge is mainly to promote it as the best quality provider of accommodation and restaurant services to travellers from UK and outside the world. By positioning it as the best provider of quality accommodation services to business class and leisure class customers, it could be possible to achieve higher growth and success to Travelodge in attracting more and more customers. The positioning as the best provider of quality accommodation services should be performed by Travelodge over digital mediums such as Facebook, Twitter, Internet marketing etc in order to cover up its intended target audience (Sengupta, 2005).
Marketing mix decisions are crucial from the point of view of allowing the organisation in achieving higher success levels. The marketing mix requires the consideration of 7Ps in particular and these are analysed in relation to Travelodge as follows:
Products: The core product of Travelodge is the accommodation services, and the restaurant services. The strategy in relation to its accommodation should be to provide rooms for business class people that are accommodated with features such as wi-fi services, internet facilities, and there should be conferencing rooms, meeting rooms in the hotel, and video conferencing facilities etc. In serving its basic leisure class customers, the focus should be on providing television, network connectivity, internet services, rooms approximated to lower disturbances etc. (Hart and Johnson, 2007).
Pricing: The pricing strategy is crucial and in order to efficiently target the selected market segment, Travelodge is required to maintain an average pricing policy so that middle end consumer groups can be targeted and they could be encouraged in visiting Travelodge in availing its services. The focus should be on offering value to the customers for the money spent by them.
Place: The place strategy is crucial and analysis of the given case of Travelodge indicates that the company provides its services across 200 properties that are owned by the company presently. However, the most significant price strategy that has been recommended to Travelodge is to consider the establishment of more properties in UK. Regarding international customers, it could enter into tie-ups with the global travel and tourism consultancy service providers. This will provide huge exposure to the company (Frazier, 1999).
Promotion: The role of promotion is important because it attracts more and more customers. As the focus of Travelodge is to target both the international and domestic customers, the digital focus is quite significant to the company in attracting international customers. As for instance, internet marketing, promotions and strategies such as discounts on first booking with Travelodge, or coupons aimed at encouraging customers in availing its services are crucial. At the domestic level, Travelodge could consider for implementing promotional strategy such as promotion through news media and magazine, TV advertisements, coupons and vouchers etc. (Anderson and Vincze, 2006).
People: In respect to service firms, the role of people strategy is crucial because people are the core assets providing services to their customers. With respect to people, the strategy of Travelodge should be to hire professional service providers that can provide best quality services, and have the relevant experience of handling domestic and international customers. Fluency in English and ways to interact with the customers should be aware to them. In respect to restaurant, best possible chefs with good experience should be considered so that customer needs can be positively addressed (Allen, 2001).
Physical Evidence: The role of physical evidence is significant in respect to service organisations. The rooms as well as the initial customer entry should be well decorated giving best possible impression to them. The walls should be painted beautifully and articles should be installed throughout. The service personnel should be well dressed and cleanliness should be maintained. These aspects are important in retaining and sustaining customers in travel and tourism industry. The application of new and advanced technological equipments would ensure better display and provide good ambience to customers.
Processes: With respect to processes, they should be excellent enough to provide best quality services to the final consumers. The processes should allow the service personnel in satisfying the customer’s query on immediate basis. The timelines factor is crucial and with such fast delivery to customers, it could be possible in ensuring their best possible satisfaction. The processes should be carried out with best technological processes and systems to facilitate higher efficiency levels.
This particular marketing strategy is quite significant to Travelodge in satisfying its customers in a positive way.
Conclusion
In this marketing plan, the present scenario of Travelodge is assessed and based on the analysis, appropriate marketing strategy has been recommended to the company in achieving higher level of growth and success in its performance. The analysis leads to identification that Travelodge has achieved good position in the domestic market of UK, but in order to succeed in targeting international customers efficiently, digital marketing medium should be considered by the organisation in promoting itself across international markets.
References
Allen, M. (2001), ‘Analysing the Organisational Environment’, Select Knowledge Limited.
Anderson and Vincze, (2006). Strategic Marketing (2Nd Ed.), Dreamtech Press.
Aaker, D.A. and Joachimsthaler, E. (2000) ‘The Brand Relationship Spectrum: The Key to the Brand Architecture Challenge”, California Management Review, Vol. 42 (4), 8-23.
Cheverton, P. (2005), ‘Key Marketing Skills: Strategies, Tools and Techniques for Marketing Success’, 2nd ed., Kogan Page Publishers.
Frazier, G. (1999). “Organizing and Managing Channels of Distribution.” Journal of the Academy of Marketing Science 27 (2): 226-240.
Grönroos, C., (2010), Service Management and Marketing: A Customer Relationship Management Approach, John Wiley & Sons, Manchester.
Hart, CW. and Johnson, MD. (2007), Growing the trust relationship, Marketing Management, Spring, pp. 9–19.
Hooley and Graham, H. (2008). Marketing Strategy and Competitive Positioning. Pearson Education.
Lamb,C. W., Hair, J. F. and McDaniel, C. (2008). Essentials of Marketing. 6th ed. Cengage Learning.
Pride, W.M. and Ferrell, O.C. (2010). Foundations of Marketing, 4th ed., engage Learning.
Sengupta, S. (2005). Brand positioning: strategies for competitive advantage. 2nd ed. McGraw-Hill Education.
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