Marketing Plan for Premier Inn: Strategies for Global Success

1 Assignment Front Cover Sheet Student Name: Student ID: Degree Title: Level: Module Title: Marketing in a Global Age Module Code: 7002MFH Seminar Lecturer: Assignment Title: Marketing Plan for Premier Inn Word Count: Link: To shared files, wordpress.com Blog, etc. By submitting this assignment, I confirm that: 1. I have read and understood the University’s Academic Integrity Guidance and that in the attached submission I have worked within the expectations of the Regulations Governing Academic Integrity. 2. I am aware that failure to act in accordance with Appendix 1 of the General Regulations may lead to the imposition of penalties which, for the most serious cases, may include termination of studies. 3. I consent to the University copying and distributing any or all of my work in any form and using third parties (who may be based outside the UK/EU) to verify whether my work contains plagiarised material, and for quality assurance purposes. Academic Integrity Declaration: I, ……. , am aware of the requirements of good academic practice and the potential penalties for any breaches. I, ……. , confirm that this submission is my own work and I accept all responsibility for any copyright infringement that may occur as a result of this submission. Date of Submission:

2 Executive Summary The report aims at developing a marketing plan for Premier Inn which is a widely known hotel brand chain in UK. Its parent company, Whitbread, started this hotel chain and has acquired various small hotels to expand its business. Each of the Premier Inn hotels have an on-site restaurant and bar providing variety of food services to its customers. Premier Inn is ranked as the best budget hotel in UK in comparison with its competitors. Although it is a budget hotel, its prices are still higher in the market as compared to its competitors. To develop a competitive advantage in the market and to accomplish its vision of being the world’s best budget hotel two objectives have been set in this report. The objectives are set in line with the vision of the company which concerns world’s best budget hotel and it can be done by increasing global presence of the company and increasing brand awareness in different countries. Various tools have been used in this report to analyse the macro and micro environment of the company such as PESTLE Analysis, SWOT Analysis. To develop an effective marketing strategy market segmentation and targeting is done to know its targeted audience and drawing a perceptual map is also necessary to take into account the customers perspective. Marketing mix developed includes the area of focus for the company to run its business. An action plan has also been developed for the company to achieve the set objective along with the control measures to monitor the progress of the objectives suggested. The key to being the world’s best budget is to increase the global presence and awareness and increase its customer base by improving its customer service.

3 Contents Executive Summary ............................................................................................................... 2 Introduction .............................................................................................................................. 5 Company Profile ................................................................................................................. 5 Marketing Strategy Context .................................................................................................. 7 Marketing Trends ................................................................................................................ 7 Customer Experience Marketing .................................................................................. 7 Voice Search ................................................................................................................... 8 Artificial Intelligence ....................................................................................................... 8 Personalisation Marketing ............................................................................................. 8 Influencer Marketing ....................................................................................................... 9 Business Environment Analysis ....................................................................................... 9 PESTLE Analysis ........................................................................................................... 9 SWOT Analysis ............................................................................................................. 10 Customer Analysis ........................................................................................................... 11 STP ................................................................................................................................. 11 Objectives .............................................................................................................................. 14 Strategy .................................................................................................................................. 14 Market Penetration ........................................................................................................... 15 Market Development ........................................................................................................ 16 Product Development ...................................................................................................... 16 Diversification .................................................................................................................... 17 Tactics .................................................................................................................................... 17 Product ............................................................................................................................... 17 Price ................................................................................................................................... 18 Place ................................................................................................................................... 18 Promotion .......................................................................................................................... 18 People ................................................................................................................................ 19 Process .............................................................................................................................. 19 Physical Evidence ............................................................................................................ 19 Action ..................................................................................................................................... 20 Control .................................................................................................................................... 22 Conclusion ............................................................................................................................. 23 List of References ................................................................................................................ 25

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4

5 Introduction This report is aimed at developing a marketing plan for Premier Inn using the SOSTAC model which is a popular marketing and business planning model adopted by organizations as a method of structuring marketing plans. This model analyses the macro and micro environment affecting the organization and then establish objectives to achieve the company’s vision. To achieve these objectives a set of actions and tactics will be used which will then be followed by the web analytics to assess whether these objectives were achieved and improvements needed to enhance results in order to accomplish the vision of the organization. Company Profile Premier Inn being the United Kingdom’s largest budget hotel chain has more than 800 hotels and 72,000 rooms across UK, Ireland, Germany, the United Arab Emirates and Qatar. The hotels are operated in various locations such as city centres, suburbs, and airports with Travelodge and Ibis as its main competitors. All of the Premier Inn hotels have either an on-site bar and restaurant or adjacent to it catering to the food choices of a broad range of customers.

6 FIGURE 1 – Premier Inn’s brand profile in the UK (Source: Statista) Established in 1987, Whitbread started the company as Travel Inn, and later bought Premier Lodge in 2004 to merge them into present day’s Premier Inn. Having been the major contributor in Whitbread’s earnings, Premier Inn accounts for 70% of the revenue. Premier Inn has two sub-brands namely Hub and Zip which have smaller rooms with in-room technology in a city centre format and low-priced rooms with simplified food and drink service respectively. § Mission – “To provide quality, affordable hotels for our guests to help them to live and work well and to positively impact the world around us.” § Vision – “To be the world’s best budget hotel” § Values – “Genuine, confident and committed” FIGURE 2 – Timeline of Premier Inn (Source: Made by author) The company is planning to expand its business further and they are actively looking for more centrally-located plots and development opportunities. They are particularly interested in cities across Germany like Berlin, Cologne and Munich (Premier Inn, 2022).

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7 Marketing Strategy Context Marketing Strategy plays a vital role in building a brand, alluring new customers and maintaining loyalty. A number of factors are considered for developing an effective marketing plan for a company. The marketing plan for Premier Inn has been developed by analysing its macro and micro environment in the business and its customer base in the large market. Marketing Trends It is necessary for the hotel owners to keep up with the changing trends in the market and engage the customers through marketing to maximize the number of bookings and revenue as well. The current trends that are being followed in the hotel industry are associated with the changing customer behaviour which are discussed as follows. FIGURE 3 – Marketing trends in hotel industry (Source: StartUs Insights) Customer Experience Marketing It refers to the marketing strategies that are developed based on the experience that customers had who stayed in the hotel or have previously interacted with

8 the brand. It is more reliable approach of marketing as the customers pay for the experience they had with the brand and not for the product or service. Premier Inn can use more of this technology and compile those experiences in a video which can then be shared on different social media platforms to increase and improve brand image. Voice Search Voice Search can prove to be a powerful tool wherein the customer can book the hotels using smart home devices. This technique can be incorporated in the hotel rooms where the customers can use voice search to obtain the latest information on tourist information or order food without having to call the reception every time and the delays in answering the calls can also be minimized by this. Premier Inn can invest in this technology to attract more customers and give them an excellent customer experience. Artificial Intelligence AI can play a major role in minimizing the workload on manpower and make the hotel services quick and delay the response time. AI chatbots can be used to ensure customers receive quick response on hotel websites which eliminates the slow response time factor. Moreover, AI-driven customer service robots can be deployed in the hotels which can further improve the customer experience. Premier Inn has a large customer base and has a number of customers to cater to on daily basis so they can make use of this technology and deploy AI robots to help in the daily chores of the hotel. Personalisation Marketing This technique relies in the collection of user data using which promotional content sent to them is tailored to the individual’s web browsing habits. The main advantage of it is that the customers see what is relevant to them as individuals which influences their choices and decisions greatly. Premier Inn can use personalised email marketing campaigns and intelligent product recommendations over the internet to target its potential customers.

9 Influencer Marketing This type of marketing involves reaching out to individuals who have significant online presence and can influence the audience by sending marketing message about various brands that they use or likely to use. Premier Inn can partner with influencers to create video content, social media posts, written content and create blogs etc. Business Environment Analysis To analyse and understand the macro and micro environment factors affecting the organization, two methods have been used as follows- PESTLE for external environment which includes political, economic, social, technological, legal and environmental factors. In fact, this is an essential step to identify the opportunities and threats to effectively analyse the internal environment using SWOT analysis to plan strategy for Premier Inn by examining its strengths, weaknesses, opportunities and threats, which are included in the internal factors affecting the organization. PESTLE Analysis Factors Opportunities Threats Political Low taxes enabled to sustain the post pandemic impact Travel restrictions due to COVID-19 lockdowns and after- effects Economic Low-interest rates boost consumer spending Utility prices surge exponentially Social Growing trends towards budget-conscious travel Change in customers’ preference towards private accommodation Increased digital presence, Cost of upgrading and

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10 Technological online reservations and promotional campaigns developing new technologies is a concern Legal Truth-in-menu laws might attract more customers Breach of rules concerning the hotel may lead to risk of lawsuits Environmental Sustainability commitment and adopting environment friendly methods Carbon emissions and waste, number of traffic drawn to the local areas Table 1 – PESTLE Analysis of Premier Inn (Source: Made by author) SWOT Analysis Strengths Weaknesses • Strong brand image • Strong presence in the UK • Range of hotels in different parts of one town • Commitment to sustainability • Intense competition in the market leads to small margins • Global presence is limited as compared to other international hotel chains Opportunities Threats • Exploring new markets • Digital marketing investment can be increased • Commercialise positive • Private accommodations and backpackers’ hostels • Legal threats if regulations and policies are not followed • Data breaching complaints by

11 customer experience customers TABLE 2 – SWOT Analysis of Premier Inn (Source: Made by author) Customer Analysis Premier Inn targets a wide range of customers be it business travellers or leisure travellers. The hotel guests are grouped on the basis of their booking patterns and travel habits. To analyse different groups and segments of the customers and the targeted audience, STP method has been used. STP STP is a marketing model which stands for segmentation, targeting and positioning that determines who the targeted audience is and in what groups the customers can be divided based on the different factors so as to target the audience effectively. Segmentation This is the process of dividing the target audience into various internally similar smaller groups. Segmentation for Premier Inn can be done as shown in the table below. Demographic Geographic • Age groups – all but mainly focused on 25-34 years old adults • Gender – both males and females • Income – moderate to high income customers • Occupation – targets customers from all occupations but mainly • Region – suburbs, city centres, airports • Countries – United Kingdom, Ireland, United Arab Emirates, Germany, Qatar • Locations – near local attractions, universities, shopping malls, airports, arenas

12 focused on business sector and travellers Behavioural Psychographic • Occasions – concerts, group traveling, and shows etc. • Uses – business meetings, leisure traveling, lone travellers • Benefits - offers and deals, discounts for business travellers • Lifestyle – family holidays, medium to elite class, enjoy traveling • Social class – economical, business class • Personality – social, outgoing, price-sensitive, value oriented TABLE 3 – Customer segmentation of Premier Inn (Source: Made by author) Buyer Persona The target audience of Premier Inn is mostly business travellers and leisure travellers. Buyer Persona for a business traveller includes the profile of a marketing executive who travels frequently for business meetings and look for an affordable and comfortable accommodation. FIGURE 4 – Buyer Persona for the hotel industry (Source: Made by author)

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13 Targeting Targeting is an efficient way to make strategic decisions in order to target the market the company wants to reach with its products and services so as to generate more business. Premier Inn targets a customer base including both business and leisure travellers, families, budget-conscious travellers, international travellers, solo travellers, couples, vacationers, adventurers and pet owners. However, the brand primarily focuses on attracting customers who value affordable and comfortable accommodation without compromising on the quality of services and amenities. Positioning The capacity to influence customer’s perceptions of a brand or product in comparison with its competitors is the objective of market positioning. There are various positioning strategies wherein a brand or product can be associated with certain characteristics, competitive pricing, quality, use or by making a comparison with the competitors. To show consumer perception of the brand along with its positioning in comparison with its competitors in the market, a perceptual map is used. Also, to identify opportunities in the marketplace. To create a perceptual map for Premier Inn two most important factors for customer evaluation have been considered, that is, price and high-quality service. Since Premier Inn is a budget hotel, it can be plotted as a low-cost option compared to other hotels in the UK market while in terms of service quality it can be considered as a high-quality service and consistent customer experience with modern and comfortable rooms.

14 FIGURE 5 – Perceptual Map of Premier Inn with its competitors (Source: Facebook) Based on this information, the positioning of the Premier Inn suggests that it is a low-cost hotel brand that provides high-quality seevice, making it an attractive option for budget-conscious travelers who value comfort and reliability. Objectives The vision statement of the company is to be the world’s best budget hotel and in order to accomplish this vision, two objectives have been set which are specific, measurable, attainable, realistic and time bounded as described by SMART test. Objective 1: To increase the global presence by opening a new hotel in Seoul, South Korea along with an on-site restaurant and bar by the end of December 2024. Objective 2: To increase Premier Inn’s brand awareness globally by 30% by the end of December 2024. Strategy Market strategies for Premier Inn can be developed with the use of Ansoff matrix which helps identify opportunities to grow revenue for business through either developing new product and services or entering new markets to achieve

15 the desired objectives. To help develop market strategies for the objectives set, Ansoff matrix determines two ways to approach a growth marketing strategy depending on which four quadrants have been created. FIGURE 6 – Ansoff Matrix (Source: G2) Market Penetration Premier Inn can penetrate existing market by promoting existing markets to attract more customers by giving discounts and offers. They can offer discounts around Christmas and New Year or when the sales decline due to fierce competition in the market. Premier Inn can also acquire small hotels which are not operating well in the market. Improving their facilities and services over time can also help gain more customers and turn the negative customer reviews into positive ones. Most of the customers reviews contain complaints about delay in food services, poor ventilation, improper cleaning and technical issues for online booking and undelivered messages because of under maintenance mailbox (Trustpilot, 2023) Premier Inn can work on all these factors and improve customer service in order

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16 to attract more customers to achieve the objective of increasing global presence. The targeted country in the objective for increasing global presence is particularly concerned about hygiene and customer service, so Premier Inn needs to work on improving cleaning services, food services and technical malfunctions by hiring more employees or doing proper supervision of all the activities concerned with customer service. Market Development Market development involves launching existing products or services in new markets. Premier Inn can use this approach of market development to open a new hotel in a new market which will also increase brand awareness and help achieve the vision of the brand by exploring new markets. The set objective requires lot of market research to enter a new market and also understanding the culture and tradition of the country so as to know the targeted audience. Knowing the target group is essential to winning new market in hotel industry and diversify its customer base. Besides, the marketing strategies should be carefully planned so that the customers are not only captured but also retained. Due to the growing interest of youth and adults in K-pop music and dramas, many people are attracted towards the Korean culture and also towards its various cities because of the aesthetics and beauty. A lot of people are moving to South Korea to attend concerts, or for travel purposes to explore the local culture and heritage-rich places. Premier Inn can take advantage of this incline in growing trend of interest towards Korean culture by opening a new hotel in the capital of the country that is Seoul. As more international travellers are going to South Korea, it would be relieving for the customers to find a familiar brand in a new place. Moreover, on-site restaurants will also attract those who are not accustomed to the Korean food’s taste and might attract local customers as well who want to try something new. Product Development It is the act of promoting new products or services in the existing markets. New services can include designing new room layouts, adding new amenities or addition of luxury or low-cost rooms. Premier Inn has already added two new

17 sub-brands as product development namely Zip and Hub where the room size is smaller than the standard hotels and also improved facilities. To attract more customers, Premier Inn can change the design layout of the rooms or design special sound-proof business meeting rooms which can be hired for business meetings which can be implemented in both existing and new markets. Even in the targeted new market most of the customers use hotel rooms for business meetings which will help grow the business in South Korea. Diversification The hotel industry is already very-well diversified as they provide food, do laundry and cleaning and other services as well. Premier Inn can further diversify its activities by growing various crops in-house for food purposes. Also, they can provide transport services from the airport or inside the city for travellers who are new to the area so as to prevent them from being scammed by the local taxi-drivers which will customer loyalty and strengthen the brand image. They can use brand image to sell its products like duvet, pillows, mattress and more to gain further success and increase their revenue. Tactics This step of marketing plan involves use of marketing mix and the marketing approach used to promote the brand like traditional, digital or the combination of both. Marketing mix includes multiple areas of focus as part of a comprehensive marketing plan. It is a useful tool to determine the way in which a business takes new products or services to the market (Mind Tools). Since both the objectives are closely linked to each other, the marketing mix serves them both. Product Premier Inn’s main service is providing rooms to guests and ensure good night’s sleep. They provide different types of rooms for different customers such as family rooms, single, double and accessible. The beds, mattresses and pillows are carefully selected which tailor to the needs of the customers. Moreover, almost all of the Premier Inn hotels have on-site restaurant and bar so that the guests do not need to go for to look for food and drinks especially if they are travellers.

18 Premier Inn should ensure that it has enough rooms to accommodate influx of people on events and occasions. And improve the customer service by implementing rigorous cleaning routine on daily basis to ensure well-being of the guests and enhance customer satisfaction which is the driving factor in hospitality industry. Price As Premier Inn is categorized into budget hotel, its prices are low as compared to luxury hotels but still higher than that of its competitors projecting it as a quality hotel amongst the competitive group. They have different pricing strategies namely, Flex, Semi-Flex, Advance, Standard, and Non-Flex (Premier Inn). Premier Inn can offer promotions and discounts to the first 100 customers upon the launch of new branch in Seoul which will help acquire new customers and retain them by providing best customer services. Moreover, the prices can be adjusted around Christmas and New Year when most of the people prefer to spend time with their families. Place Premier Inn hotels are mostly located in the city centres, suburbs and airports with car parking facilities in different countries including UK, Ireland, United Arab Emirates, Qatar and Germany that appeals to different customer segments. They can reach their potential customers through either direct or indirect methods. The direct methods include personal telephone calls, online pay-per-click, printed media advertisements, social media advertisements and hotel website booking systems. While the indirect methods include third parties such as travel agents, event planners, online travel portals and independent hotel representative. As Premier Inn will enter new market as per the set objective, it can gain more customers by making partnerships with event planners, local travel agents and online travel portals. Promotion Promotion plays a vital role in the marketing mix. Premier Inn plans to invest £20 million into marketing in 2022 aimed at broadening its digital reach

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19 (Jefferson, 2021). Along with its attractive website Premier Inn actively uses all other sources of communications including TV commercials, hotel websites, social media platforms. Premier Inn can focus on using digital media to increase brand awareness. They should partner with some influencers who can promote their brand through Instagram or other social media platforms. In addition, Google Ads can used to increase visibility and also search engine optimization could be done to improve brand visibility. People Premier Inn hotels and restaurants employ more than 36000 people in the UK who serve over 5 million customers each month (Whitbread, 2022). They provide many apprenticeships programmes to its employees maintain the level of service as expected by the customers. However, as per the customer reviews there has been delays in food services and cleaning of the rooms. Premier should focus on the supervision of these activities and also hire more employees from the local area in Seoul which will create brand awareness in the area and also generate employment in the region. Process The process to book rooms is easy which can be done through Premier Inn’s website and app. The rooms can also be booked over the phone by providing required information. Check-in and check-out have been made easy with the use of an electronic kiosk which does not need much assistance from the staff. Moreover, breakfast and meals are booked separately reflecting transparency in prices and also allows flexibility. Premier Inn can add pick-up and drop services from and to airport as part of its process for international travellers which will provide it an edge over its competitors to gain more customers. Physical Evidence The hotels themselves are the physical evidence of the brand along with the logo which represents cosy and warm night to fulfil brand’s promise of ‘good night’s sleep’. The big rooms, king-size beds, chairs, pillows, duvets,

20 comfortable chairs and more add to the attractive physical environment of Premier Inn. Premier Inn can also include parks in its hotels for children to play. Besides, the adults can also go for walks after dinner and couples can also go for leisurely walks at night. Action A Gantt chart has been prepared to plan out activities to be carried out throughout the year to achieve the two objectives along with the duration of each activity. The construction activities and advertisement activities are carried out simultaneously to save time and intrigue the customers with new designs and better advertisement campaigns.

21 FIGURE 7 – Gantt Chart of Set Objectives (Source: Made by author) Activities JAN FEB MAR APR MA JUN JUL AUG SEP OCT NOV DEC Develop the advertisement concept of Premier Inn hotel. Production of advertisement content Launch and run of advertisement campaign on digital media and TV. Measurement and of advertisement campaign results Finalizing the design layout of Premier Inn hotel Building of a new building Launch of Premier Inn in Seoul Measure the progress of hotel activities. Objective2- to increase brand awareness by 30% by the end of December 2024 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Objective 1 - to increase global presence by opening a new hotel in Seoul by the end of December 2024 Develop the concept and idea of the advertisement of the year. Produce advertisement content. Launch & run of traditional campaign (billboard, TV, radio) Launch and run seasonal advertisement campaign(sampling ) Online advertisement (display advertising/SEM/newsletter) Measurement of outcome of a campaign (seasonal of yearly campaign )

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22 Control To ensure whether the objectives are being achieved and asses the activities carried out control actions are required. This process is essential to weigh up the positive and negative outcomes to determine how successful the marketing strategy is. Control Marketing activities include the assessing of performance through key performance indicators. Benchmar k Action Strategy KPIs Measureme nt Customer Brand awareness advertiseme nt campaign Market Penetration • Brand mention • Increase in revenue • Positive customer reviews Q3 and Q4 of 2024 Developme nt Build a new hotel in Seoul Market developme nt • Using best raw material for the constructi on • Partnering with suppliers and Q1 and Q2 of 2024

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23 interior designers External relationship s Strengthen brand image and customer loyalty Market penetration • Increase in sales Q3 and Q4 of 2024 Web Analytics Website and customer analysis Market penetration • Positive customer reviews • Increase in number of customers Q4 of 2024 TABLE 5- Control Marketing Activities for the set objectives (Source: Made by the author) Conclusion In conclusion, Premier Inn has maintained its position in the UK market as the best budget hotel, however, in the global market it needs to improve its brand image and customer service. The company can improve its customer service by supervising the daily activities concerning giving the customers the best experience. It is a well-established hotel chain which plays to its advantage to open a new hotel in other locations. Moreover, it has Lenny Henry as its brand ambassador who can positively influence the audience to use the services provided by the hotel.

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24 The recommendations that can be given to Premier Inn to increase its global presence are as follows: • Increase global presence by opening new hotels in Asian countries • Increase brand awareness by using digital media and offline methods • Improve customer service and hire more employees • Change the design layout and use attractive designs to gain customers By implementing these recommendations, the company can grow further and strengthen the brand by giving its customer an exceptional experience and also accomplish its vision to be the world’s best budget hotel.

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25 List of References LinkedIn. What can brands learn from Premier Inn's marketing masterclass? https://www.linkedin.com/pulse/20141011134315-45850910-what-can- brands-learn-from-premier-inn-s-marketing-masterclass Hospitality Net. Premier Inn. https://www.hospitalitynet.org/brand/23000188/premier-inn.html How and what. Marketing mix of Premier Inn . https://www.howandwhat.net/marketing-mix-premier-inn/ G2. Ansoff Matrix: 4 Strategies Leaders Use to Grow Business . https://www.g2.com/articles/ansoff-matrix Jefferson, M. (2021). Premier Inn pins recovery hopes on marketing with ‘invest to win’ strategy. https://www.marketingweek.com/premier-inn-recovery- marketing/ Kasi, A, K. (2020). Ansoff Matrix of hotel industry. Ansoff Matrix . https://ansoffs.com/ansoff-matrix-of-hotel-industry/ Kunst, A. (2022). Premier Inn brand profile in the UK 2022 . Statista. https://www.statista.com/forecasts/1335699/premier-inn-hotels-brand-profile- in-the-uk Premier Inn. FAQs/Room Rates. https://www.premierinn.com/gb/en/faq/room- rates.html Premier Inn (2022). International Development . https://www.premierinn.com/gb/en/business/international-development.html Rahman, M. (2022). PESTEL analysis of Premier Inn. How and What. https://www.howandwhat.net/pestel-analysis-premier-inn/ Revfine. The latest hotel marketing trends in the hotel industry. https://www.revfine.com/hotel-marketing/

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26 Whitbread. (2022). About Us. https://www.whitbreadcareers.com/about-us/

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