Marketing Audit

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External Environment Analysis

Analyse your brands external environment by applying the PESTLE framework. This analysis should focus on recent, current and future factors and trends that may impact, not only your chosen brand, but its industry as a whole. There are three bullet points under each PESTLE sub-heading, but you may have more factors under some sub-headings and less under others, it depends on the industry you are researching. Each point must include a citation to an academically credible source. This section should be approximately 600 words.

Political

• There are regulatory policies in the UK tourism and hospitality industry that may influence the organisations revenue like the recently implemented tourism tax (Sandford, 2023).

• Brexit has the potential of jeopardising the free movement of labour and products, therefore posing challenges such as scarcity of staff and high costs (Arif & Hossin, 2016).

• Global warming is a well-known issue, and for Premier Inn, it might cause the government to impose some policies and rules to minimize carbon emissions, which could lead to the company increasing capital expenditure for eco-friendly practices (Arif & Hossin, 2016).

• There is likely to be some impact on the attractiveness of the UK as a tourist destination for example through changes in visa policies (Sandford, 2023).

• Some rules and regulations have been set out by the local councils in planning, and development they may also affect the expansion of Premier Inn.

• The contingency plans and actions of the government during the COVID-19 pandemic may extend their influence to the hotel business (George, 2021).

Economic

• Hospitality services are impacted by the UK's economic situation, which includes elements like recessions and recovery phases. Premier Inn is affected because fluctuations in currency rates affect import and export expenses, which in turn affect supplier costs (Christophers, 2019).

• The cost of borrowing is impacted by inflation of the interest rate, but basic operational costs are also reduced by inflation (Christophers, 2019).

• Direct rivalry results from rapid technology innovation, the rise of the sharing economy, and businesses like Airbnb (Mordor Intelligence, 2024).

• The COVID-19 virus-related worldwide pandemic has an impact on customers attitudes and behaviours (Anguera-Torrell, Aznar-Alarcn and Vives-Perez, 2020).

Sociocultural

• Customers are also becoming more environmentally concerned, which has an impact on how they do business (Sonawane, 2020).

• Variations in the population, such as the rise in the number of older citizens and single travellers, are examples of such influences (Sonawane, 2020).

• Fitness centres and healthy food options are impacted by several community factors, including socioeconomic status and general physical or health consciousness (Sonawane, 2020).

• The way that consumers make decisions and perceive brands is influenced by social media. In particular, the Premier Inn brand is impacted by online reviews and ratings (Sonawane, 2020).

Technological

• Premier Inn recognizes that cutting-edge technology, such as artificial intelligence and machine learning, may be applied to enhance important user experiences while also assisting in operational management (Sharma, 2016; Edgar and DSouza, 2023).

• Utilizing smartphone applications and online booking platforms to change the nature of customer connections with the business is another important way to distinguish between traditional and contemporary tourist advertising strategies (Sharma, 2016; Edgar and DSouza, 2023).

• Investors in the data analytics and cybersecurity industries should continue to be prioritized, as customers' data security and protection require special attention (Pizam et al., 2022).

• Using Internet of Things (IoT) devices, such as energy management systems and smart thermostats, to improve energy usage (Edgar and DSouza, 2023).

• Customers now have more options for entirely digital experiences because of the advancement of = virtual and augmented technologies (Pizam et al., 2022; Edgar and DSouza, 2023).

Legal

• The Hotel Proprietors Act, the Health and Safety at Work Act, and the Disability Discrimination Act, among other national rules and regulations, are all followed by Premier Inn (Papadopoulos, Lopez?Andreu and Jamalian, 2021).

• Data protection regulations, such as the GDPR, govern the prospective disclosure of consumer information. This suggests that pay and working conditions for employees are impacted by laws that affect companies and staff relations regulations, such as the National Minimum Wage Act (Papadopoulos, Lopez?Andreu and Jamalian, 2021).

• Adhering strictly to these regulations can help prevent penalties, legal ramifications, and damage to a company's reputation (Nikolskaya et al., 2019).

• Certain types of businessessuch as those involving food hygiene and regulated commerce, among othersalso have to adhere to certain requirements (Nikolskaya et al., 2019; Papadopoulos, Lopez?Andreu and Jamalian, 2021).

Environmental

• In addition to energy usage within the hotel sector, there is also the worry of their carbon echo or footprint (Eid and Agag, 2020).

• Consumers now anticipate welcoming environments with features like energy-saving appliances and recycling (Eid and Agag, 2020).

• Compliance with environmental regulations and upholding Premier Inn's reputation are equally important reasons to meet these goals (Kim and Kim, 2017).

• Natural disasters pose a risk to companies and customers, as they can disrupt services and cause hazards (George, 2021).

Performance Environment Analysis

Analyse your brands performance environment by applying Porters Five Forces model to identify key information relating to competitors, suppliers, distributors/intermediaries and buyers (i.e. customers). This analysis should also apply marketing theory to describe how your brand currently segments the market and must include a perceptual map, you have created, demonstrating your brands current position within the market. Each point must include a citation to an academically credible source. This section should be approximately 350 words.

Suppliers

Among the top suppliers that surround Premier Inn are food and drink items, supplies for washing and linens, and maintenance and repair services. In addition to the COVID-19 epidemic, which prompted the closure of Premier Inn's suppliers, Brexit also impacts suppliers and may make it more difficult for Premier Inn to get enough inventory for renovations to the hotel rooms and improved guest experiences. Because suppliers and backup plans can lessen these risks, diversification is crucial (Tan and Despotis, 2021).

Distributors/Intermediaries

Hotels, internet travel firms like Orbit/Expedia, and travel agencies are the distributors and intermediates for Premier Inn. These distribution-related problems, such as commission disputes with OTA partners, technical difficulties, and payment concerns, can also have an impact on Premier Inn's earnings and clientele (Stangl, Inversini and Schegg, 2016).

Customers

Business and leisure visitors searching for affordable, high-quality lodging for brief visits make up the majority of the target market. Based on psychographic factors like loyalty and a tendency to travel frequently, the business also separates its market based on demographic data like age, sex, and employment (Statista Research Department, 2024). Using behavioural parameters like booking rates and room type inclination is another significant selection heuristic employed by Premier Inn. Target markets for the brand are threefold: These divisions consist of "Business Buzz," "Leisure Loungers," and "Family Fun," and they are targeted with suitable services and marketing campaigns (Kaya et al., 2022).

Competitors

Premier Inn's primary rivals are Travelodge, Ibis, and Holiday Inn Express. Competitor initiatives that impact Premier Inn include Travelodge's attempts to improve its product offerings and brand image, Ibis's expansion of its reach into the UK market, and Holiday Inn Express's endeavour to modernize its reward programs (IBIS World, 2024)

Perceptual Map

New Entrants

The emergence of new players in the UK budget hotel industry is likely due to the segment's growth and profit margins, which draw potential investors. Oyo Rooms and Moxy Hotels are the latecomers. Potential threats to Airbnb's hotel division might come from new competitors developing innovative ways to compete in the industry (Mordor Intelligence, 2024)

Substitutes

Other low-cost hotel and food service providers in the UK, such as Airbnb, hostels, and serviced flats, are substitutes (Mordor Intelligence, 2024; IBIS, 2024). Because customers may switch to other goods that offer a variety of experiences and flexible financial arrangements for living, this highlights the threat of alternatives in the market. Premier Inn must thus provide a distinct competitive advantage in terms of service quality, convenience, and the capacity to draw in and keep repeat business.

Internal Environment Analysis

Analyse your brands internal environment by using Porters Value Chain as a framework to identify its existing competencies and weaknesses. You should look for information under both the Primary and Support Activities although may not be able to discuss all areas of the business. Each point must include a citation to an academically credible source. This section should be approximately 300 words.

Primary Activities

Inbound Logistics: Suppliers and the procurement procedure, and inventory management are some of the primary activities (Whitbread, 2021)

Operations: All the locations of Premier Inn follow similar production lines which improves the room turnover ratio and guest services easier (Whitbread, 2021). However, high turnover ratios could play a point in the deterioration of the services provided to the clients.

Outbound Logistics: Proximity to major activities and limo deals enable guests to conveniently access the facilities. Thus, it may be a weakness if there is limited control over external logistics partners (Sharma, 2016).

Marketing: Digital marketing and loyalty programs and promotions are considered competitive advantages. However, the use of third-party booking platforms could lower the profitability of the firms operations since costs form part of the transaction price (Whitbread PLC, 2024).

Customer Service: The company has a customer support number available at all times, and helpful guest services (Whitbread PLC, 2024). However, this might have a possibility of having an undesirable weakness, which may include that the quality of the service delivered to customers may not be consistent from one location to another (Sonawane, 2020).

Support Activities

Infrastructure: A major advantage for the Premier Inn is its well-presented and well-maintained hotel accommodation. However, aging properties in need of renovation could pose a weakness although, the management noted that repairs and upgrades could be made (Flori?i?, 2020).

Human Resource Management: Because it offers a comprehensive program for its employees, it is a strength in terms of training and development (Whitbread PLC, 2024). However, a high incidence of employee turnover and a lack of workers may lower the quality of services provided (Papadopoulos, Lopez?Andreu and Jamalian, 2021).

Technology: Premier Inn has made investments in digital media sources, data and analytics, online presence, and online analytics and media management, which are all essential components of success in the modern hotel industry (Whitbread PLC, 2024). However, if the systems are outdated or there is a cybersecurity breach, they might turn into vulnerabilities.

Procurement: The relationship with the supplier and procurement management is one of the organizations relative strengths (Whitbread PLC, 2024). Nevertheless, there is a tendency to develop cooperation only with several major suppliers, which may create problems in the supply chain and network.

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