This report focuses on the marketing concept of Travel Lodge, then deliberate on the production and product orientation highlighting the advantages and disadvantages. Furthermore, this report aims to identify and discuss the marketing orientation adopted by Travelodge, providing examples. Additionally, this report discuses Travelodge marketing environment, then identifies one legal and technological fact that could impact on their business operation and the behaviors of their consumers. The internal environment factors that could be considered as strengths or weaknesses of Travelodge’s business operations, as well as the marketing strategies and marketing mix are discussed.
Overview of Travelodge
Travelodge was established in 1985 to become the first UK value hotel brand in England. Travelodge is a private limited company that operates across the UK in hospitality and hotel management services and amongst the third largest chain of hotels in the UK for their number of rooms and the second largest within the hotel sector. Since then, Travelodge has grown from strength to strength and is now amongst the biggest hotel brand in across the UK with over 4,000 guest bedrooms and 560 hotels, including Spain and Ireland. More than 80 percent of Travelodge can be found in most major cities such as Cardiff, London, Madrid, Belfast, Birmingham, Edinburgh, Barcelona and Manchester (Travelodge, 2018). Furthermore, almost all of Travelodge hotels are located near coffee shops and restaurants and the company has over 170 hotels with on-site Bar Café restaurant with expectation of expanding in 2018 with 20 new hotels (Travelodge, 2018).
Task 1: Marketing Orientations/Concepts
The term Market orientation can be referred to as the creation, distribution and reaction of business to the market intelligence (Tadepalli and Avila, 1999). Coviello et al., (2002) defined marketing orientation as the philosophy of management that to obtain the goals of a company depends on the business understanding the wants and needs of the market target and meeting the demands better in comparison to their competitors.
Product Orientation
A product orientation can be described as a company focus on the products as their strength with the belief that their products are superior and of high quality. This method allows the company to attract customers since the business has what the customers need. The benefit of product orientation adopted as a business model is that it permits the company to concentrate on the quality of the product which allows the business to focus on creating the design of their perfect product which acts as its strength.
Another benefit of product orientation is that the company can focus on investing in technology to be developed which can be used for their products (Smallbusiness.chron.com. 2018). However, the disadvantage of the product orientation is that it creates missed opportunities and narrowing of the brand as where companies focus on the high-quality product that customers should want, which might not always be the case as customers consider the brand image, this could lead to other opportunities being missed (Smallbusiness.chron.com. 2018).
Production Orientation
Production orientation can be defined as the focus of a business on whatever the business supplies or produces (BusinessDictionary.com. 2018). In the production orientation approach, businesses mainly focus on reducing their cost by producing mass products as they believe that the “economies of scale” produced through mass products, reduces cost and increases their profit margins. However, a disadvantage of this philosophy is that businesses that focus on the production orientated approach need to consider avoiding the efficiency process production as it may likely affect the quality and design of the product.
The effect of adopting a production orientated approach compromises the quality and design of the product which is likely to lower customers appeal to the product, thus should be considered. The difference between the two is that product orientation focuses on the product marketing strategy whereas the production orientation focuses on the concept of manufacturing (Smallbusiness.chron.com. 2018). Travel lodge adopts a product orientation strategy of unbeatable value in hotels and aims to be the choice of customers in value for hotels with their attractive modern bedrooms with comfortable king size beds (Travelodge, 2018). An Example is Travelodge chief technology officer Hellewell in 2018 stated that the company focuses on sales orientation with the company receiving over a million visits a week and over 12 million checks in services a year, Travelodge intends to focus on technological innovation to boost growth across their hotel chains (News, 2018).
Task 2: Marketing Environment
Legal and Technological Factors
Consumer protection law is one of the legal factors that could affect Travelodge. Travelodge should ensure that their customers are guarded under the following consumer laws; weight and measures act which ensures that goods sold to customers are of standard quality, trade description act which ensures that consumers are not given misleading information on products, consumer credit act, and sales of goods act that ensures good sold to the consumer conforms to the required standards (Li and Kannan, 2014, pp.43). Technology may impact a business positively or negatively. Travelodge should make use of the internet as a technological factor to improve their services. Social networking sites like Facebook, and LinkedIn should be accessed with ease without many ads to communicate with their targeted audience.
Travelodge should be able to utilize their websites well and provide instant responses on inquiries made about their services on their websites (Saura, Sánchez and Suárez, 2017, pp.76). By responding to feedbacks they get from the social sites, they will be able to increase their customer services. On the other, positive reviews from the customers may attract new customer hence increasing the customer turnover in the hotel while negative reviews may lead to a drastic drop in visitors seeking Travelodge’s services.
Travelodge’s Strengths and Weaknesses
The hotel offers prices which are very affordable, along with rates for doublet rooms as well as family rooms which comprise of frequent and special deals that may include booking deals during special occasions. Promotions along with deals are considered to be part of some of the best ways to boost the revenues and attract clients for a budget hotel. Having affordable prices assists Travelodge to spread its name and brand to more people (ToughNickel, 2018). Offering quality and low-cost services which are consistent with the company’s brand and its product and service range is helpful in extending Travelodge’s marketing. This makes people talk more about their activities. In addition to this, the hotel also runs programs that are designed for its premium clients who include the Travelodge Business Account Card.
Among the weaknesses that are associated with Travelodge is that the hotel does not provide its guests with a whole range of services and products. For instance, the hotel does not provide the customers with concierge service, room service, or even porter services. This is common with most budget hotels (Leeflang, et al., 2014, pp.7). This results in the hotels being referred to as boring and plain-looking. As the customers place a higher value on the experience that they obtain from a hotel and have many other choices, this weakness may present a disadvantage to Travelodge by making the clients feel unsatisfied since the hotel does not live up to the clients’ expectations.
Task 3: Marketing Strategies
Positioning
Positioning refers to how Travelodge’s products compare to those of its rivals, the values as well as the benefits. A market strategy requires that there should be an appropriate positioning of Travelodge’s performance with its clients. The strategy regarding Travelodge’s positioning mainly aims at promoting the hotel as the best quality provider of restaurant services along with accommodation to travelers (Park, Mishra and Wozniak, 2014, pp.217). The hotel identifies itself as a budget hotel that aims at providing reasonably good service at a fair price. Adoption of this strategy has helped Travelodge to attract clients who are on a low budget.
Low-income clients are considered to be the most loyal customers because they have reduced sources of information which they can use in evaluating their choices as well as higher switching costs as Srivastava (2012) notes. Also, this group of low-income customers is viewed as being price sensitive, thus they respond very well to discounts and promotions. Regarding age, Travelodge is more appealing to mature individuals who are in their late 20s and 50s. This group of individuals prefers to have a traditional-looking and quiet accommodation. Also, the hotel appeals to couples who have children.
Positioning Strategy
In positioning themselves, Travelodge could use the breakaway positioning method. Breakaway positioning is a technique whereby the consumers recognize a product depending on its features which may comprise the distribution channel, functionality, luxury, feel, design, features, appearance, and pricing. It is a marketing technique that assists the brand in creating its own niche or image, and this at times results to impulsive buying (Sirianni, et al., 2013, pp.111). A breakaway campaign would be appropriate for Travelodge since it is capable of connecting with consumers at different levels.
The brands that adapt the breakaway strategy of positioning always try and they maintain their niche. This is because they are able to create their own image in the consumers’ minds, which cannot be associated with any other type of brand. As a result, the brand is in a position to retain its customers (Paharia, Avery and Keinan, 2014, pp.649). This strategy helps a brand to develop its own niche through the creation of features that are not offered in any other product or the pricing of these products is such a way that it is impossible for any other brand to match it. An example of an organization that uses breakaway positioning is Apple. The organization has differentiated itself from all the other mobile manufacturers in regard to its products’ quality and features.
Task 4: Marketing Mix
A marketing mix involves creating the right product that will be capable of attracting customers’ attention. The hotel produces itself from offering low prices as well as fresh and clean rooms to its primary stakeholders who are the customers. Regarding the products, the hotel offers accommodation and other related services to its clients. For example, their products comprise of fully-furnished double rooms, including family rooms that have got limited services such as room services, reception, and even Wi-Fi. Being a budget hotel, Travelodge’s infrastructure is standard and only suitable for a short stay. In delivering the products and services to its clients, it is a necessity that all the products in all its hotels are the same, having the same price and the rooms are clean and fresh.
Travelodge’s physical environment refers to the evidence that the customers see when they visit the hotel. The physical environment is crucial for the hotel in respect to the way it organizes its services. For example, the rooms and the initial customer entry are well decorated, thus giving the customers the best possible impression (metaTags.other ‘og:site_name’, 2018). The walls are painted beautifully and articles are installed throughout the hotel. In addition, the service personnel is well-dressed and cleanliness is maintained to the highest standard. These aspects are essential because they help to retain and sustain the clients in the travel and tourism industry. However, the physical environment is the hotel’s biggest problem because most of its hotels do not look the same as a result of their layout. Thus, most of these hotels need a brand update.
Conclusion
Travelodge being among the top hotel in the UK is working hard to maintain its image. It is focusing on product orientation as its main strength. The hotel focuses on the products as its strength, and it strives to make sure that the products and services offered are of superior and high quality (Mintz and Currim, 2013, pp.22). Travelodge like any other business organization, devices a strategy to outdo other hotels. The company adopts a product orientation strategy of unbeatable value in hotels and aims to be the number one choice by customers in terms of value with their attractive modern bedrooms with comfortable king size beds.
Among the legal factors that could affect Travelodge include consumer protection laws. Additionally, the internet is a technology that could as well have an impact on the firm. Offering prices that are affordable are among the hotel’s strengths while its weakness is that it does not provide its guests with a whole range of services and products (Fan, Lau and Zhao, 2015, pp.29). Travelodge positions itself mainly by aiming at promoting the hotel as the best quality provider of restaurant services along with accommodation to travelers. Travelodge’s marketing mix includes offering low prices as well as fresh and clean rooms to its primary stakeholders.
Integrated market communication (IMC) ensures that all forms of messages and communication are linked together in a careful manner. The advantage of integrated marketing communication is that it leads to an increase in the profit margin through increased effectiveness (Batra and Keller, 2016, pp.133). Another benefit is that IMC creates consistency and credibility of massages, hence reducing the buyer’s risk. This shortens the process of searching aids to dictate the positive result of brand comparisons. Also, in an area such as photography and graphics, IMC saves money as it eliminates duplication. This is because they can be shared and used in exhibitions, advertising, and sales literature. More so, IMC helps in nurturing long lasting relationships with customers through consistent images, useful, and relevant messages.
Explain two elements of the promotional mix
The first element of a promotional mix is the advertisement. It is a non-personal presentation where a common or standard message regarding the price, merits, and availability of the service or product is given by the marketer or producer (Oladepo and Abimbola, 2015, pp.100). The advertisement attracts customers to the product by appealing to them directly to buy the product. The other element is sales promotion which refers to the use of incentives or other promotional activities to encourage the customer to buy the product. Sales promotion methods always have an immediate and short effect on sale.
Discuss the promotional mix element that Travelodge adopts
The promotional mix that Travelodge adopts is the advertisement. It is the paid promotion of ideas and presentation of goods or services in a mass medium by an identified sponsor. Advertisement can reach many people example advertising a product through television (Sagala, et al., 2014, pp.2263). It also provides a chance for marketers to create a dramatic message with help of pictures, dance or a video a clip expressing the use of the product. Advertisement lacks feedback since there is no accurate and immediate feedback from customers. Another disadvantage is that the costs may be passed down on the customers through high pricing of goods and services.
Discuss the channels used by Travelodge to increase its brand recognition
Travelodge uses the following channels to increase its brand recognition: the social media has been an effective channel since in the current world everyone gets the information they need from the web. Travelodge manages an active social media page on common networks like Twitter, Facebook, and Google (Karjaluoto, Mustonen and Ulkuniemi, 2015, pp.707). The media allows Travelodge to gather loyal subscribers and be able to reach subscribers and make them aware of prices or events and new services. Travelodge also offers loyalty cards or membership cards which are used to accumulate points for customers to trade for discounts in their rooms or dine in stores in the hotel itself or in any other restaurant.
Discuss the key message in Travelodge’s video campaign
The key message in the Travelodge’s video campaign is their new upgraded rooms, comfortable new king-sized beds, location, and amazing value. Travelodge is advertising about their improved rooms and bed size. This means that Travelodge evaluated well their customers’ needs and came up with king sized beds and more cozy rooms for their customers. The location of Travelodge can be easily accessible and convenient to all the customers. Travelodge is also expressing how amazing their value is and this may prompt people to visit and experience the amazing values.
Discussion of the key target audience of the video campaign and their characteristics
The major target audience for the video campaign is the customers. This to inform them of the hotel’s improved products such as the king-sized beds. Peoples’ lifestyle may be a target audience too. It entails how people spend their time. Travelodge is targeting the lifestyle of people who love cozy places like comfortable rooms, which led to the introduction of king-sized beds. The video also targets everyone, including both the new and the existing customers. When targeting everyone, a positive feeling should be conveyed which is likely to create a broad appeal.
Use of AIDA marketing theory to explain how the video campaign’s source attributes and key message
Through the use of pictures and powerful words such as “king-sized beds” the video grab the audience attention. The Travelodge video campaign may build interest because the message is direct and helps the customers to have knowledge about the brand being advertised. It also makes the customer have increased desire to experience the hotel’s value (Venkatesan, et al., 2015, pp.648). Through the video, the customers can understand the products offered at Travelodge and how the services can help them. The video is very clear about the action they want the audience to take, which is to visit the hotel and experience its value.
Discussion of one (1) method Travelodge should use to collect feedback
Travelodge can monitor social channels such as Twitter, Facebook, and LinkedIn because they can be used to provide customer feedback (Gartenberg, et al., 2013, pp.568). Through the use of social media, Travelodge can listen to negative comments, respond to feedback, and address the issues quickly. This will help Travelodge improve the user experience.
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