Analysis of the Market Condition

Brief

As a team (of 2 or 4) you have been asked to develop a Marketing Plan for Travelodge which must also include an example of the digital communication. This plan must be based on the information provided in this assignment should also use other relevant sources of information, such as: business reports, books, websites, magazines and newspapers, among others.

Teams must use specific technical terminology (such as segmentation criteria, marketing mix, positioning, etc.) in the assignment when appropriate. The use of references throughout the assignment is highly recommended. The use of theoretical frameworks (such as: SWOT analysis, Michael Porter’s five forces, etc.) must be applied in a practical way to Travelodge’s situation analysis. This assignment must be divided into sections and within each section the use of numbered headings and subheadings is recommended.

Your marketing plan should include:

• External Analysis of the market (Macro and Micro) and Internal Analysis regarding Travelodge

• Identification of Segmentation, key target audiences and brand positioning for Travelodge  

• Marketing Mix (7 Ps) with particular focus on digital communication regarding Travelodge

This report is based on ‘Travelodge’ one of the developing companies in the UK. The company offers budgeted lodge booking services to the clients from different parts of the country. It was formed in the year 1985, and since then has introduced effective strategies for developing the business management system. 

Evaluation of the current situation

Travelodge was formed in the year 1985, and the company offers budgeted accommodating to the clients in the UK. The company has over 200 lodges across the UK. Travelodge believes in promoting the brand and does this through brand communication procedure. In order to compete with the competitors and increase the share of the company by more than 25 %, the management has proposed to choose to invest in online marketing process. Promotional activities have been done through online method, involving digital communication process. Through this process, the management of the company promote the sales of the lodge booking to the clients on a higher scale. The company intends to use the e-commerce method through which the travellers would be provided with the best options for the development of the company. The online method would provide the required services to the clients, as tis will make booking and sales process simple and fast (Barefoot and Szabo, 2010).

Marketing plan has been prepared to introduce new methods for improving the sales and visibility of the product for the clients. The process includes analysing the needs of the customers and developing new plans for promotion the services to the clients. The new marketing plan is to approach the clients through digital marketing process. The strategies include introducing new systems through which the promotional activities can be carried out by the management (Bucy, 2003).

In the conventional service booking process, the company has 300 staffs that takes more than 3 million calls every year and sell around 2 million rooms. This has been possible to the presence of many lodges on the way and within short range. Services have been exclusively categorized as per the business class and leisure travellers. Travelodge intends to target 70% of the market and for this different types of travellers have been targeted. Through target market, the company draft plan for customers categorized in different groups like business, holiday travellers, and on the way stops travellers. Through brand awareness, an attempt has been made to mechanise the services of the company. The marketing strategy has been prepared to promote the services to the clients through the online marketing process.

Marketing Plan

Mass online communication process has been selected for promoting the services to the existing and potential clients for the company. This would enable the management to segment the clients and improve the marketing strategies. This will help in increasing the sales and promotional strategies. The company through digital marketing process plans to increase the brand awareness, for customers with different requirements. Through this process, the company attempts to understand the requirements of the clients and develop effective promotional activities which will promote the services (Burmaster, 2009).

Market segmentation is associated with the marketing strategy that has been drafted by the management to target 70 % of the customers from different parts of the UK.  In this process, the company has categorized the expectations of the clients as per different requirements which are meant to increase the sales for the management. The purpose for segmentation is to find the right type of customers to whom the products can be sold by the company.

The company has followed the below mentioned type of segmentations-

• Geographical – The segmentation is done on the basis of geographical areas like states and regions. Data of the customer requirements has been collected to develop better marketing strategies for the clients. Through this method, the management intends to provide information to the clients located at different places. The data collected will be used for digital marketing purposes.
• Behavioural – Travelodge is known for the offering lowest price lodging services to the clients. The company aims to increase the service level to more than 70% of the market share. For this, the behaviour of the clients and the expectations has been analysed by the management.
• Demographic – The variables like the age of the customers, gender, and occupation is considered in this process. Such an analysis will help the management to perceive the requirements of the clients and offer the best services that will handle the requirements of the clients (Fiore et al., 2005).
• Segmentation by benefits – The segmentation of the clients is done through the online promotional activities which are meant to benefit the existing and potential customers.

Through the positioning approach the company has proposed to identify and target the clients located in different regions of the country. The positioning factor helps the management to approach the clients and offering the best possible deals through which the sales for ‘Travelodge’ can be increased.

Through marketing mix process, the company attempts to develop and introduce better marketing strategies through which the sales for the lodging services can be increased. In this method, the company work towards developing brand image, which is one of the most important factors for improving the production activities. The marketing mix is based on the below mentioned factors –

Product – Travelodge offers budgeted services for the clients. This includes providing lodging services to clients travelling for business or personal purposes. Through online marketing process the management attempts to sell the products to clients from various parts of the market (Fogg, 2003).

Price – Travelodge offers lowest priced goods and services to the clients, and this is one of the reasons the buyers choose this company. Prices are decided as per the existing market competition and other factors, through which the sales can be increased.

People – both existing and potential clients of the company are the people. Offers are drafted by the management after analysing the expectations of the clients, and thus the marketing strategies are developed after thorough research.

Promotional activities – Travelodge has chosen online marketing process through which the marketing strategies are developed and implemented by the company. In the promotional activities, the details of the products and services offered to the clients are highlighted. This is expected to increase the sales and improve brand awareness amongst the customers (Ghose et al., 2009).

Place – This includes deciding upon the place where the services has to be promoted by the management. The strategies for marketing have been decided as per the expectations and preferences of the clients.

Process – This includes developing and introducing steps through which the strategies for product development can be introduced. 

Target Market

Physical evidence – In this process, the past performance of the company is taken into consideration as it will help in the product development and improvement of sales.

Strategies for the company

The promotional activities has been developed by the company is meant to intend to increase the sales. In order to attract the clients, the management has proposed to approach business class and other type of customers. Through this method the preferences are analysed as this would help in improving the sales. Attempt has been made to increase the offers provided to the clients as this will help in increasing the sales.

The situational analysis has been done with an intention of promoting the services and increasing the sales for the company. Through this process, the external forces impacting the business performance has been analysed. This is done to find and adopt the better strategies for improving the performance. The impact of the external factors on the business performance is done through PEST analysis which analysis the below mentioned factors –

• Political – In the political factor, the management proposes to follow the rules drafted by the government. This will enable the management to carry out the operational cities and introduce the changes that is considered to be essential for performing better. The process includes drafting and following trade practise and other factors that can affect the business performance directly (Gurau, 2008)
• Economic – Due to economic recession the clients look forth for the purchase of cheaper and reasonable products. Travelodge ensure to provide the best deal that would serve the purpose of the business class and leisure travellers. Discounts are offered on different type of services, after analysing the requirements of the clients. The process includes introducing strategies through which the changes be introduced by the management for attracting clients from different markets.
• Social – In this factor, the social requirements of the travellers are analysed. This includes analysing the requirements of the clients like the traveller’s budget, offers, stay facilities and others. The offer and services are compared with the competitors as it is meant to help in the business development.
• Technology – the online marketing process has been adopted by the management to market and sell the products to the clients. Through the implementation of the technology, it is possible for the management to develop and introduce effective steps through which the changes can be introduced by the management for approaching the clients (Hart et al., 2000).

In the micro analysis, the company analyse the external factors that an affect the business performance. This include evaluating the performance of the below mentioned factors –

Customers – The customers from different market and geographical areas have been targeted by the management. In this method, offers are rolled out to attract the attention of the clients. this is necessary for increasing the sales for the company

Competitors – Through competitor’s analysis, the company attempts to increase the sales by approaching the clients. In this method, the offers and deals offered by the competitors has to be analysed. This will enable the management to develop and introduce better strategies through which the performance can be improved.

Media – Promotional activities has been improved as this will help in increasing the sales for the company. Online promotional avidities has been planned to be implemented by the company. Through this method, the company intends to render more information about the deals and offers rendered by the management (Hennig-thurau, 2004)

Internal factors or the challenges are analysed through the SWOT analysis.

Due to increase in the level of competition, the management has proposed to analyse the challenges that can affect the business performance. The challenge is with the training process that needs to be implemented by the company for improving the perforce of the company. The changing economic condition impacts the business performance, and the sales.

The company aims to improve the sales by increasing the market share up to 70 %. In this process, the challenges and other factors associated with the sales and promotional activities are analysed as this will help in increasing the performance for the company. Online marketing strategies have been decided to be adopted by the company.

Promotional plan

The promotional plan has been designed to approach maximum number of clients from different markets. This would increase the sales for the company and improve the brand image. The strategies adopted by the management intend to improve the performance and approach maximum number of clients from different parts of the market. The company has proposed to introduce online marketing strategies through which the sales is attempted to be increased. This includes analysing the steps and the strategies that would be followed from approaching the clients and improving the sales (Hill et al., 2006)

Segmentation

Travelodge offers different types of products and services through which the sales for the company can be increased. This includes offering discounted offers to different categories of clients like business and family travellers. Through this method, an attempt is made to approach maximum number of clients, which is necessary for increasing the sales. Through online promotional activities, the company intends to offer better deals and services to the clients. With the help of the online promotional activities, the company intends to approach clients and highlight the services of the clients. Better options for the products are developed in order to offer the best deal to the clients (Hill et al, 2011).

The company proposes to adopt better strategies like online and offline promotional activities for marketing the products. In this process, the company has planned to introduce effective strategies throng which the best possible deals can be offered to the clients. Online promotional enables the company to interact with the clients and analyse the preferences of the buyers. Through this method, the changes intended to be implemented by the management is decided and introduced by the experts. This is one of the important tasks that would enable the company to increase the sales and productivity for the company. the by the essential detail related to the business performance and other factors are intended to be shared with the clients, as this will help in selecting the better option through which the sales for the product can be increased. The strategies adopted have to be analysed on the basis of the performance and objectives of the company.

Online marketing communication is considered to be one of the best options through which the clients can be approached. Some of the methods that is intended to be followed in this process are –

Email marketing – This method includes sending mass email to the clients to inform the details about the products and services that is being rendered by the clients. this is one of the cheap and reliable methods to market the services

Pay per click – In this process, the management of the company can adopt the promotional activities. Through the process the paid adverts are planned and developed in an effective manner. This helps in creating brand awareness which is necessary for improving the performance (Kalyanaraman, S. & Sundar, 2003).

Social media – This method enables the company to manage the brand image, which is done through different social Medias like Twitter, Facebook, and p-interest. Information about the company and the products are shared with the viewers as it would help in increasing the awareness of the services rendered.

Conclusion

Marketing strategies play an important role in the business development and implementing steps that would help in the attracting the clients. In this process, the challenges and opportunities has to be analysed as this will help in improving the sales and marketing strategies for approaching the clients. The selection of the customer depends upon the requirement of the clients. In this method, the marketing strategies have to be selected and implemented for improving the productivity for the company.

Marketing Mix 7 P Model

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