Marketing Management - Report Example

Executive summary: The hotel industry is a very challenging and competitive industry in the contemporary world. This fact has led to the continuous growth of investments in this industry. Travel lodge is one of the leading brands in the tourism and travel industry. It is currently widely known company that offers accommodation to a wide range of population at all local, national and international levels. Although its major consumers are families and corporate clients. During its formation, it was established near Burton in Barton-under-need wood with a capacity of 20 bedrooms. Over the years, Travel lodge has had a massive growth and expansion in the UK and Ireland. It currently has over 200 properties and provides about a quarter of the total market space. This accounts for about 25% of the market. Introduction: Marketing management is a field of organization which focuses on practical application of knowledge and skills, techniques and methodology in order to manage a firms marketing activities and marketing resource. The integration of the worlds economies has enabled firms to consider the international market in their marketing strategy. Objectives and strategies should be clearly stated in line with the organizational culture. Below is a marketing plan for Travel lodge. A European organization which began in the UK with an aim of catering for needs through provision of accommodation services (Travel Lodge, n.d). First, for purposes of understanding this organization, there is a need of identifying its mission statement. In its mission statement, Travel Lodge aims to provide high quality service, to its clients, in any part of the world. The corporate vision of travel lodge is to make it easier for its customers to access Furthermore; the organization has a vision of becoming a leading provider of travel lounges in the world. The corporate vision and its strategic intent are in line (Jansen, Moore & Carmen, 2012). This is because the strategic intent of the organization is to be a leading brand in the accomodation industry. Travel Lode aims at achieving this objective by training its members of staff on the best methods of handling customers, for purposes of ensuring that they are competent in providing services. This strategic plan of the organization is further coupled by the long term goal of the company (Travel Lodge, n.d). Travel Lodge has a long term goal, and this goal is to become a cost leader in the provision of accommodation services. Another objective is to increase its profit margin by ten percent, at the end of the year (Travel Lodge, n.d). The company also aims at increasing its current price, from five Euros, to ten Euros per share. This is by the end of the current financial year. Another important objective of the company is to be a leader in the provision of accommodation services to corporate organizations and families around the world. Based on these backgrounds, this paper provides a marketing plan, for Travel Lodge. Situational Analysis Internal analysis The companys economic status is still stable and a steady income of over ten million euros per year. Travel lodge experiences the growth of its customers annually. The peak season is usually during holidays such as during winter and summer. The high numbers of customers provide a wide market for travel lodge. Services we offer are of good quality giving us an upper hand in our business. An example includes providing luxurious accommodation, and satellite television. We have 2500 rooms which serve customers of all kind. However, we might need to increase the rooms when this marketing plan is implemented. Travel lodge services can be accessed in various locations such as on motor ways and "A" roads and also in tourist attraction sites. The presence of reservation sales centers provides advance booking services for customers which makes it even more attractive. Apart from accommodation, we have good restaurant facility which serves the needs of the customers. Sophisticated website provides online communication and booking services for all clients. Our price is pocket friendly and this does not compromise on the services that we offer as expressed by escalating number of customers we continue to receive (Elizabeth & Minton, 2014). Every room has facilities to help the client make tea and coffee, the beds are luxurious and a free newspaper is availed for every guest. Micro analysis Internal Strengths include the ability to reach to clients out and interact with them virtually through the internet. A lot of competition from new entrants is experienced and this is likely to reduce the profit margin of travel lodge leading to its decline. It is a well-known branded that has national publicity of about 70% of the total market population in the UK. Travel lodge receive international guests whom come from all walks of life. The fact that we have several branches in Europe gives us an advantage over other competitors. Macro analysis Existing companies may pose a challenge if we are to establish in strategic places in other countries. Tax rates differ significantly in different countries and this may affect the profitability of the business if it continues to offer services at a constant rate (Lynn & Kahle, 2011). The labor market may differ significantly in different regions. This will result to an increase in the cost of labor. External Threats involve the presence of new entrants in the accommodation business who shares in the market reducing the profit margin (William, 2005). Opportunities include the presence of unexploited market. The use of marketing strategies will ensure that we reach out and convince new clients to join our esteemed clients in accessing the accommodation services that they need. The politics of the countries in which travel lodge is operating play a key role in ensuring the success of the business. Policies are legal frameworks and guidelines which govern the companys operation (Homburg & Sabine, 2009). Our pricing is consumer friendly especially so because it does not affect the quality of service we provide. The numerous investors in the travel lodge sector has increased competition for the market and we need to expand our market in order to stay in business. People may also opt for hotels that offer accommodation at the expense of our travel lodge organization (Foxall, 2005). Organizations consuming our services may have a high bargaining power especially when they come together. This brings a lot of competition. Given that we offer the best price in town, we may secure a deal. We are not well marketed and therefore our brand is not the leading, we are likely to come as a subsequent consideration especially by international consumers (Guillaume & Greir, 2011). The fact that we are geographically located far away from our potential consumers makes it expensive for them to travel to us and at times they opt for closer options which denies us the profits we would otherwise have gotten. The use of the internet to communicate to our clients makes us build a close relation with the clients and this builds trust and therefore giving the company a competitive edge (Kuester, 2012). Easy and quick process of checking in and out of the premises makes it attractive to clients from all walks of life. The branding is leading in the UK and accounts for about 25% of the market population. About 75% of the total UK populations are fully aware about the services offered by this brand. It has been marketed through various means such as the use of the internet, mass media such as television, newspapers and the magazines. Spending will vary by seasons. That is during the peak season, there is higher expenditure directed towards marketing and promotion as a strategy of attracting more clients. Sales promotion Anticipated major programs and adjustments will be affected to ensure that we are capable of meeting the needs of the consumer. Establishment of new branches in new territories will help expound business territories, we expect that the prices tagged to our services will be reduces substantially to cater for customers wellbeing. Marketing communication will be enhanced through various forms of media such as visual means on billboards and posters, audio means on radios, print media such as newspaper and magazines and the social media and internet media (Bonoma, 1983). Strategic Planning: The Basic Decisions Marketing objectives To improve sales obtained from service provision. To increase the market share from its current state of 25% and maintain a distinctly leading position. Market/customer analysis Consumer behavior Kuester (2012) explains that consumer behavior is the study of individuals, groups or organizations and how they acquire, utilize, and dispose services, products, ideas and experiences. This is for purposes of meeting their needs and achieving an expected outcomes of these activities. Knowledge from various fields that study human behavior such as socio-cultural anthropology, sociology and psychology has been used to study the behavior of human beings in varied contexts (Foxall, 2005). Marketing strategy: Marketing is defined all attempts by the business entity to convey the value of a brand, product or service they are offering to potential clients and consumers. This is done in order to promote, or sell that brand, product or service (Lynn R. Kahle, 2012). The techniques involved in marketing include target market, market segmentation and consumer behavior. To meet the goals and objectives of marketing, there is a need of ensuring that the company communicates efficiently with its consumers. Targeting and Segmenting Market is categorized into macro and micro market (Bonoma, (1983) based on this, we are able to pinpoint our esteemed customer from the crowd. The target market is defined as a group of individuals within the population that is target for by the business as potential consumers. They are people who share a common distinguishable characteristic that are notably different from the rest of the population. In most cases peers such as the youth are likely to have similar consumer characteristics. Marketing efforts should therefore be used to identify the potential of consumers of merchandise in order to concentrate their efforts of marketing to the right target population (Coleman & Schumacher, 2005). Target market can be identified through the following aspects including segmentation which is identifying the geographical location of the target market. For instance keeping records of their addresses may be of great benefit to the business. This will help the business to address the issues of climate and terrain associated with the different regions. The target market can also be classified through socio-economic and demographic issues (Jansen, et al., 2012). This involves issues such as age, gender, social income, etc. The needs and demands of people in different demographic categories differ considerably. This leads to marketing strategies which will enable Travel lodge address as much needs as possible and get a wider market for their services. Psychographic segmentation this is seen through the similarities in thoughts, attitudes, beliefs values and general lifestyle of individuals which is used to categorize them into groups(Homburg & Sabine Kuester, 2009). Target populations with similar psychographic phenomena are classified under the same category. This will enable the business to reach out and to addressing the needs of people who have different beliefs, values and attitudes. Behavioral segmentation is simply classification of target market according to their usage rates, levels of loyalty and occasions when they are likely need the product or service that you are marketing. In a target market, people are seen to have various characteristic (Lynn R. Kahle, 2011). Some are loyal to their service provider yet others are not. This will enable us meet the needs for corporate customers and individual customers efficiently and effectively. Cultural segmentation involves the division of the target market, on the basis of their cultural beliefs, values, tradition and other cultural aspects. Religious beliefs for instance can be used to determine the success of the marketing strategy. This is because it will inform the marketing strategy to be culturally relevant to the beliefs and values of the target population. Elizabeth (2014) further explains that this would in turn help the organization to meet the specific objectives of its marketing. Market segmentation is another marketing strategy. This is where the target market is further divided into smaller units of consumers. This normally depends on the interests and needs of their target customers (Belch, 2007). Marketing Mix Objectives, Strategies, and Tactics Service Provide warm and cold shower at the disposal of the consumer. Provide privacy to the consumer and unnecessary interruptions shall not be tolerated. This will be done through proper training of staff to enable them be competent in handling the consumer. Provision of luxurious services by the organization, may also lead to the attraction of new customers. Promotion (communication) In advertising, we shall use various means of communication to convey our message to the market. We shall use the mass media which include audio such as radios written means such as newspapers, billboards and posters, and audio-visual means such as Television. Service sales promotion: These are events where we provide services at a subsidy to ensure that the clients get to have an experience of the services we offer (Belch, 2007). It can be done annually to ensure that all esteemed customers benefit and spread the news about our service and sales promotion as a means of appreciation. Packaging can be a resourceful way of marketing our services. All our employees will for instance have uniforms on as they perform their duty and all facilities we use shall be labeled with the logo. This will help our customers to associate our brand with the service that we offer. Direct marketing this will involve hiring or employing people to convey information about the services we offer in our travel lodge. Control and Evaluation Forecasting will involve the projection in to the future of travel lodge given the successful implementation of the marketing strategies. Budgeting will involve consideration of all the relevant areas and a budgeting committee shall be formed for purposes of ensuring that there is an equitable distribution of resources in areas that are involved in marketing. Examples include, in the areas of advertisements, sales, research, etc (Engel, 1968). Scheduling and Timing are key in any marketing strategy. Our organization will offer promotional serves during the peak seasons so that we ensure maximum profitability. Organizational activity calendars and timetables will be used appropriately to meet this end. There is need to conduct an evaluation on the success of every marketing strategy that has been implemented. This will help in gauging the extent to which our organization has been marketed to the public. Financial Projections By the implementation of this plan, we are capable of increasing our annual profits from by 30% in the next two years as a result of increased customers especially during the peak season. However, without it, we can only manage to raise. Conclusion This report involves travel lodges profile and services offered by the company in an attempt to meet the needs of the customers, hence making some profits. It involves its goals and objectives, mission and vision statements, target market and market segmentation and marketing strategies used. Situational analysis incorporates the use of SWOT analysis, 5Cs and porter 5 forces model. This reveals a true picture of the situation from which we can strategize and implement an appropriate plan. Bibliography BELCH, G. A. B. M., 2007. Advertising and Promotion: An Integrated Marketing Communications Perspective. Seventh Edition. ed. New York:.: McGraw-Hill/Irwin. BONOMA, T. A. S. B., (1983). Segmenting the Industrial Market.. D.C. : Heath and. Top of Form COLEMAN, R. T., JR, & SCHUMACHER, J. (2005). Annual franchise and distribution law developments 2005. Chicago, Ill, American Bar Association. Bottom of Form ELIZABETH A. MINTON, L. R. K., 2014. . Belief Systems, Religion, and Behavioral Economics. New York:: Business Expert Press. ENGEL, J. F. K. D. T. a. B. R. D., 1968. Consumer Behavior,. 1st ed. ed. New York: : Holt, Rinehart and Winston. FOXALL, G., 2005. Understanding Consumer Choice.. Basingstoke: Palgrave Macmillan.. GUILLAUME, J. D. & GREIR, S. A., 2011. Targeting without Alienating: Multicultural Advertising and the Subtleties of Targeted Advertising. 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