The Political And Legal Factor Marketing Essay

Holiday Inn is a medium to large sized well-known hotel in whole over the world, which has 1, 301 hotels internationally. The first Vacation Inn hotel exposed on 1st august 1952 in a roadside location in Memphis, Tennessee. Mr Kemmons Wilson primarily developed the business plan after his family excursion in Washington DC where he had poor quality service from roadside motel. Holiday Inn is one of the world largest economy string hotels forming small percentage of the British Intercontinental (IHG). In order of the customer service Getaway Inn endow with two types of service, an example may be High- Go up full service plaza and another one is Low- Surge full service hotels.

The following information divides by four different tasks. First part is situation examination. Holiday Inn ties in the accommodation and hospitality sector in travel and travel and leisure industry. Stakeholder and their passions will be more important to recognize for situation evaluation. PESTTLE and current marketing issues also considered in situation research. Second part is marketing report of segmentation, concentrating on and setting strategy of Vacation Inn. Promotion, distribution and pricing strategy has referred to in marketing statement. The expanded marketing combination (process, physical and folks) has effectively used in Holiday Inn. Third part is focused on market research record for customer support and describes the periods of research plan. Last part is Vacation inn contribution and obligations in environment and public sector.

Chapter: 1. 0 Situation research.

1. 1 Organisation structure: Getaway Inn is area of the IHG brand plus they have worldwide business in whole around the world. They have hotel from 3 stars to 5 personalities hotel. Getaway Inn has two types of business in the market one is holiday break inn hotel and another one is vacation inn express. Vacation Inn services are booking services, reception services, room's services, food/beverage services and other services like laundry services. Vacation Inn provides serviced and non serviced accommodation to the friends. Holiday Inn objective assertion is "Great Hotels Visitor Love". Quality Excellence and Help Customers with Quality Products is main goal of Holiday break Inn. So by nature and environment of this business, Getaway Inn fits in accommodation and hospitality sector in travel and travel and leisure industry.

1. 2 Main stakeholders and their interests

Stakeholder is the person or company who direct or indirectly related to the business enterprise. Stakeholder can affect business by their interests and activities as well business can affect their stakeholder by their activities. Getaway Inn has internal and external stakeholder in their company.

1. 2. 1 Internal stakeholders:

Owners and shareholders: Getaway Inn has strong talk about business in the show market. People find their hobbies in the Holiday Inn and be stakeholder of the business. As long as company doing well and be profitable business in the market, shareholder will have good sight and once business heading down shareholder will attempt to leave the business. Holiday break Inn is one of the leading hotel companies in the world plus they have good position in talk about market.

Employees: staffs are the main internal stakeholders of Trip Inn because, company run by their activities and contribution. Every staff has specific tasks to perform regarding company policy and procedure. Vacation Inn has real human resource manager where worker can get offer with them. Staff accepts the conditions and condition of trip Inn worker work insurance policy when they recruit to the business. HRM will take regular interview or diagnosis to check employee's performance and they will provide sufficient support to get employees determined, such as promotion, salary increase and further training etc. As long staffs are happy in the company they will provide valuable service and performance for the business and that happiness depends upon their facilities like bonus deals, sufficient wages, savings etc from the business.

1. 2. 2 Exterior stakeholders:

The community: The city is considering the environmental concern, job availability, and social issues. Holiday Inn always provides them first goal, as they can become a proper wisher for the business. They will look for the activities of the company and they will take proper function on that. If company do any pollution they will raise complain which will get pressure group attention. If company do any social event plus they participate there they will become part of the company and can recommend others.

Customers: customers can make company go longer if they get expected quality product and services besides, nowadays customers are definitely more aware of the merchandise and services. Holiday Inn always provides quality services because they are now in the top of the client choice list. Loyal customers expect quality service, offers, coupons etc from the business and Holiday break Inn does these things to feel them that they are valuable in the company.

Government: government acquired interests in corporate tax, which more can get paid by more profitable company. In addition they look company insurance plan and procedure they are following government regulations. If indeed they do not abiding regulations they will take proper action upon onto it.

Pressure group: pressure group is one kind of company who can push the organisation for taking immediate action such as -

Health and safety.

Food hygiene.

Environmental issues.

HRM issues.

If pressure group locates any issues, which, need to improve, they'll protest it and can give them certain time to recuperate it.








Figure 1 - macro environment of business travel and travel and leisure (July 2010) Research missing

1. 3. 1 Political and legal factor:

Political and legal factors is include by those are the activity which originates from administration and take changes in the hotel industry. Trip Inn gets affected by political and legal factor such as, Taxation, Legislation, political stability and administration period. Paul (2010) analyse, new legislation make a difference the company in a variety of ways. Whenever the government change they can bring new rules, which is often bad or good for the business. "The industry faces a relentless tidal influx of taxes and payment proposals from a variety of sources - federal government, talk about and local - including hotel occupancy taxes proposals that will task the industry and our ability to act in response, "

1. 3. 2 Monetary factor:

Company's survive length of time depends on the nation economical fluctuation. Economic recession bring big hamper for the company. Different country got different exchange rate, which may bring more problems. Financial factors are including by

Inflation rate.


Exchange rate.

Economic expansion.

Interest rate.

1. 3. 3 Sociable factor:

People know about their status and brands mindful in society plus they choose the multinational hotel industry for his or her holiday. Holiday break Inn hotel always expose the country's culture, which shows the admiration of the country. Holiday Inn is more worried about their customer's expectation level and they trained their worker to provide the best. Cultural factors such as -



Customer expectation.


1. 3. 4 Technological factor:

Technology is the main element features, which brought revolutionary changes in hotel industry. Technological factor include by


CRM system.

E- Marketing.

E- Business.

Research & development.

Holiday Inn always acquired modified with new innovative technology. They have all the present day technology in their industry to provide quality services with their customers. For example they have to provide 24/7 Wi-Fi Internet services because of customer demand.

1. 3. 5 Environmental factor:



Natural devastation.


Environmental factor include by

Company should look after about country's environment condition and take appropriate action corresponding it. There is an environment agency in every country that always monitors every company's activities to balance the environment. They make sure company will not affect that environment if it's they'll take legal action to the.

1. 4 Marketing Issues

Holiday Inn is one of the major hospitality industries on earth. They are really facing more marketing problems while they are working their worldwide business. Nowadays the main marketing issues are more likely to come up at the top is economic turmoil in the american country. A lot of the Western european country is on inflexible turmoil and which impact on total hospitality company. When the economical crisis is goes on people has fewer jobs, less money to invest and they struggle to endure their regular life. In this problem people do not even think about to visit or stay outside where they have to pay. Along with this economic crisis, there may be another marketing issue is competition company on the market place. Numerous hospitality industry on the market place and they are providing various offer to draw in customers where specific amount of customers are available in the market as reason of financial fluctuation. Terrorist attack and war is another marketing concern which affect the business enterprise in lots of ways, particularly in Midsection East the riot and attack going on which impact our businesses as travelers feel risky to go to there. Advertising campaign is about the most and most common ways to promote company offers and products. New technology and updated technology is changing the advertisements system. All the companies are posting their offers and products advertise in internet (website, personal blogs, Facebook, twitter, etc). Holiday Inn also brought these changes in their company. They put new advertisement of their deals in their own website as well in other intermediary's websites. Check in-out, online repayment, online passbooks, online scheduling and cancelling are also getting changes with new technology system.

Chapter: 2. 0 Marketing Article.

2. 1 Segmentation, targeting and setting (STP)

Segmentation, targeting and setting is a simple method of understanding customer behavior and organisation market behavior that help gratify customer expectation as well company revenue.

2. 1. 1 Segmentation:

''Market segmentation recognise that individuals fluctuate in their likes, needs, attitudes, lifestyles, family size and structure, etc. . . . . . . . it is a deliberate plan of increasing market demand by directing marketing initiatives at significant sub-groups of customers or consumers'' (Chisnall, 1985: 264). However, another market segmentation can be address, which is often product focused to customer need based mostly focused. Two main looms to segmenting the market, one is malfunction and another one is build- up method. In malfunction method where look for the identity groups with the various values and it is most recognized and well established method. In build- up method the main aim is to consider the similarities where no considerati65on for differences. ''The build-up methodology seeks to move from the individual level where all customers will vary, to a far more general degree of analysis predicated on the recognition of similarities'' (Freytag and Clarke, 2001).

Holiday Inn hotel received their segmentation strategies as like the majority of the hospitality industry got. According Breeze (1978), Segmentation heterogeneity and member homogeneity has been used in trip Inn from very long time.

Segmentation strategies are

Step- 1

Specify the market.

Step- 2

Establish segmentation requirements.

Step- 3

Generate segmentation variables.

Step- 4

Develop and examine market segment information.

Step- 5

Evaluate company's competences to serve selected segments


2. 1. 2 Targeting:

Target market is specific place or time where company should take appropriate action which has been covered by market segmentation. After segmentation company can serve their products or services towards targeted segment.

Kotler (1984) discussed a focus on method which called jointly DAMP and Holiday break Inn company concentrate on their market predicated on DAMP method, to make segmentation effective all the sections must be

D - Distinct.

All the segments should have differences with one another.


It should be easy to get at, so that promotional program or distributer can go through easily.

M- Measurable

Company can measure or identify any section easily.

P- Profitability

Is that the segmentation is good fortune for the business?

For target market there are 4 approaches where Trip Inn use differentiated and concentrated marketing approaches.

Target marketing strategies. (Fieldwork)

Holiday Inn use differentiated and targeted marketing where they find many sections and they appeal to and target each portion different way. Trip Inn Company makes their offer and deals in specific way where these are targeting only them. As an example Trip Inn are running a offer which is called kids stay and eat free with their parents. On this offer they targeted parents where kids cannot stay without their parents.

2. 1. 3 Setting:

According by Kotler (1997), ''Positioning is the act of designing the company's offering and image so that they occupy a meaningful and unique competitive position in the target customer' thoughts''. As Ries and Trout (1972) defined setting is vitally essential as it is ''not what you do to a product, it is what one does to your brain of a prospect''. After segmenting and identifying the prospective market, company look for the area where they'll make their brand position that means why customer can purchase your products. Positioning concerns with two basic elements. First one is inner as your physical capabilities and capabilities in your brand offer and the next an example may be products recognition and responses in software industry with the competitive brands.

2. 1. 4 Four segmentations criteria

To segment any market there exists four main requirements, which is vital for the marketplace segmentation.







Family size.

Income level.








Zip/post codes.






Purchase rate.

Consumption rate.

Media usage.

Technology use.

Holiday Inn Company sections their market through above four segments. They segment their market according to the customer era and gender. For example they do kids free offer matching by the kid's era and even they have offer for the family by relative size. Geographically they portion their market relating by country or countries area as like in London 2012 Olympic season holiday Inn opened a new branch close to the Olympic stadium for the tourists and travellers of the Olympic game as they know the purpose of the travel. They always look for the client lifestyle and price concern as they offering new offer so that customers need and want meet their expectation. They section the market regarding the purchase and usage vitality of customers.

2. 2 Product and services:

Medic and Middleton (1973) referred to product ''as considerably as the tourists is concerned, the merchandise covers the entire experience from enough time he leaves home to enough time he profits to it''. Holiday Inn is one of the IHG industries. Holiday break Inn has two different style hotel companies in their own they are simply Holiday Inn Holiday resort and a different one is Trip Inn Express. Ultimately both part received same products and services with some distinctions. Products availability and reliable service is depending on size and group of the business. Bigger hotel got many facilities than smaller hotel. They have all the kept up to date technology, product and facilities to provide quality service to their customers. Maximum Trip Inn resort acquired pool, Spa, sauna room, medical centre, and a day security guard and boutique facilities. In bungalow they have air-condition, tea-coffee manufacturer, hairdryer, telephone, Wi-Fi and outdoor wooden balcony. Every Trip Inn got their own restaurant where they offer bread and breakfast, lunch and meal. Restaurant has Club and get together facilities. As vacationers come from overseas Holiday Inn received forex service in the reception table. Holidaymakers can also withdraw money by using free cash machine in the hotel. As external facilities in the reception table, customers can get airline flight conformation, choosing services, taxi- cab arranging, and babysitting service. There is certainly some additional services where customer needs to pay like car parking, laundry, and safe-deposit package. Each and every room got DVD and satellite facilities for customer entertainment. All are Holiday Inn Hotel and exhibit are smoke free property. CCTV are providing to regulate and track record for the every single activities.

2. 3 Rates strategies:

Price is value of a product which has set by the business to make profit and restore their cost, where customer are oblige to pay to choose the product. Costing strategy is 3 types. You can find three pricing strategy which is been using to rates products or services.

Cost- based charges: price is determined by product or service and where company add price in order to cover their cost and make profit. In that sense company charges strategy is bit risky as they don't allow customer-buying power. Company can make profit or loss in cost-based rates strategy.

Customer based prices: the company can determine their price or company that customer is able to pay. Customer purchasing capacity is more matter in this strategy. Company might create less revenue because some thought for customer but can make more profit if indeed they sales amount is high.

Competitor based pricing: rates strategy is by a firm where competitor takes on a vital role. Company always look for the competition prices skim as they price their product.

Holiday Inn do customer based mostly pricing and rival based pricing strategy. Along with this holiday Inn will psychological costs system, for example winter offer: room from 49. 99 in vacation Inn. When customers see the price is 50. 00 rather than 49. 99, they'll assume the purchase price is bit higher but the difference is only 1 cent. In competitor centered pricing strategy vacation Inn always look their rival activities after on the rates strategy. Holiday break Inn rates position is with regards to the demand and offer. Holiday Inn CMO Tom Seddon (August 27, 2009) said we always see how other company moving their business and making customer appealing to their products. We also rates our product matching demand and supply and we also behave on the real time.

2. 4 Advertising strategy:

Promotion strategy is ways to support marketing by using different communication press including advertising, personal selling, direct marketing, open public relationship, and sales advertising.

Elements of promotional mixture are

Source: Promotional-mix. (Lecture notes).

Holiday Inn encourages their products in lots of ways. Essentially they use advertising and sales advertising strategy to promote their products as well they also use other campaign strategy.

2. 4. 1 Advertising:

Kotler and Armstrong (1999) identify, Advertising is ''any paid form of non-personal demonstration and advertising of ideas, goods and services through mass media such as newspaper publishers, magazines, television set or radio by an recognized sponsor''. So, advertising is undoubtedly a way to promote products or services by using mass media like newspaper, TV, radio and magazine etc. Advertising is above the range promotion method.

Holiday Inn publishes their new promotional offers in order to get customer attentions and also tell them about the offers. Nowadays online advertising system been using in advertising method. For example Facebook, twitter, etc. Even customer can find all the discount rates or promo codes in online such as in myvouchercodes. com. Along with they put their campaign offers in their website so whenever customer gets to the website they'll find all the offer information. Holiday break Inn advertisement mass media is broad and everything been using effectively for advertising products and offers.

Holiday Inn Advertising Marketing (field work)

2. 4. 2 Sales campaign:

Sales advertising is one kind of marketing technique where company make sales for product more than a certain time and where they enhance their sales size. To improve sales target Trip Inn make plenty of promotional offers plus they release it through advertising advertising such as Tv set, publication, online, etc. For sales advertising they provide offer and entice customer to buy it. They put their offers in Vouchercodes. com, newspaper, newspaper and Television so that customer can get inform about any of it. For example Holiday Inn submit their recent promotional offer in vouchercodes. co. uk and the offer is: up to 20% off with 21 advancements booking at vacation Inn. Other promotional offers of Getaway Inn are

Free deal: kids eat and stay free.

Big offer: first nighttime free at holiday Inn.

Big deal: great keeping with loyalty membership membership at trip Inn.

2. 5 Distribution strategy:

Distribution strategy is the process of providing your products from your organization to customers. Distribution can occur in two ways either direct or indirect.

OTHM notes 2011.

Holiday Inn Company uses both are the syndication strategy. They make quick access because of their products on the market so that customer can get it easily. They give their products to the intermediaries like head to operator who is able to sales their products or services to customer. For example Thomson is a travel operator they package air solution, accommodation cost and carry costs etc. mutually plus they make deals for the customer where Thomson can sale vacation Inn products in the accommodation sector for making a suitable offer. This indirect syndication method can be profitable for the business if they have control over the merchandise and exactly how well they interacting with the travel operator. Vacation Inn acquired their own office and website where customer can buy their products directly. In this immediate syndication customer can have more facilities than other syndication. Holliday Inn makes weblogs and advertises on website or different social networks where customer can get their products by using hotel website. They use both are the distribution strategy so that they spread their products more. Nowadays market has enough of competitor for an identical product and they want to get their customer in anyhow. Holiday break Inn has chosen both strategies so they give customer more choice to get their products or services.

2. 6 Expanded marketing mix

Marketing mix is a conceptual framework work which features the concepts, decision marketing professionals make in configuring their offerings to suite customer needs. Marketing combination idea has first given by Borden in 1965. Marketing combination has main four elements these are product, price, place and campaign. But there are 3 extended marketing mixes which is added by many authors for the moment of marketing research and they are people, process and physical information.

2. 6. 1 People:

People are related to staffs. Getaway Inn has got proper trained and skilled staffs in their company. Holiday break Inn cares about their staff with exceptional benefits. They have got Holiday Inn 401(k) plan for the eligible and successful staff. Under 401(k) plan staffs have benefits such as retirements plan, pension strategies. Employees also get staff special discounts and bonus deals on performance. In other benefits plans they have health and wellness benefits and insurance coverage plans like life insurance coverage. They pay such a competitive salary to their employee form entry level to advanced. Every succeed employee receives health care such like oral and vision treatment plans. Regarding to 401(k) plans eligible employee also obtains educational programme along with paid trip vacation, versatile working timetable and discounts on holiday Inn services. Trip Inn provides proper induction and training for the employee to provide best performance for the company. Every employee receives review and responses after regular interval. HR sector maintain all the problems of staffs aspect to give a nice working environment for worker.

2. 6. 2 Process:

Process is including by arranging, check in- out and queuing system. Getaway Inn has such a powerful process because of their products. Customer can make their arranging through phone, mail and fax as well by using online services. Holiday break Inn website is controlee by automatic software where customer can get a day service. For confirmation of reserving customer will receives immediate confirm meaning via their contact details. Customer service is always provided by trained and friendly staff. Holiday Inn has 24 house reception and customer service so customer can get insight any moment.

2. 6. 3 Physical information:

Physical facts is company appearance in the client eyes. Trip Inn is perfectly designed and embellished with quality of their products and services to get customer best interest. Every room has all the facilities for the client satisfaction such as Tv set, Wi-Fi, and telephone etc. All the rooms and services is organised by the customer budget and expectation. Holiday break Inn changes their decoration with the season and festive. For example In Christmas time they will decor their hotels with the Christmas tree and other related equipment. Company building structure is fit with easy access for the clients where customer can get in easily and also disable gain access to available. Holiday break Inn provides noises free service with nice and unpolluted environment. Holiday break Inn has well lighted rooms and well decorated furniture and furnishing.

Chapter: 3. 0. Market research.

Marketing research is the organised information process, which ''has regarding the gathering information, control, analysis, storage area and dissemination of information to aid and improve decision making'' (Seibert, 1973: 128). Every company they carry out expert general market trends drive to do research in market. Research Information could be qualitative or either quantitative information. There exists some are the steps which has been consider to do the market research about the client satisfaction with the provided service.

At the starting of the marketplace research about client satisfaction of the provided service from Holiday break Inn, researcher should take an target and eye-sight where he desires to go with research plan and the perspective will proceed to one to get goal. Primary goal and vision must be clear understandable and realistic. Once the purpose has arranged company should identify the customers whom they want to do market research. Different customer has different view with the own interests and they might give you wrong information so appropriate identification should happen on that level. Research plan must be according company gathered time bound. The research has to be within the conducted time because if researcher will take additional time from the conducted time, research information may change because of time frame. There are fixed budget for the marketplace research so all the trouble and activities should make matching by budget. Strategically all activities should make in a row so activities should go constantly step-by-step. There should be specifying all the activities for each and every strategy so research information can handle easily. To find the feedback about customer satisfaction researcher should make a questionnaire form where customer can put their comment and opinions. Researcher might use different distribute channels to send the proper execution to the identified customers like Email, post etc. Questionnaire form should be short and understandable for the client. In appendix 1 there is a questionnaire form for client satisfaction for the service they received from Vacation Inn. By distributing the questionnaire form to the customer and obtaining their opinions, researcher can simply get the customer view about the service. They could happy with the merchandise however, not with the staffs or these were happy with staffs not with the products. Researcher must outline and implement every reviews from the questionnaire form and find out the precise decision of the sufficient level. If they are unhappy with the service, what particular reason for that and do something upon them. That unhappiness may relate with the staffs or techniques of the service. Proper market research and research end result can give a chance to develop the products or services. ''Thoughts, judgement and courage stay important attributes for the successful decision machine. Research is the handmaiden of skilled management but never its alternative'' (Luck et al, 1970: 8). All the information will bottom on qualitative and quantitative data. Main data is when all the data has gathered about client satisfaction by research and measurement. Key research method can occur in lots of ways such as

Surveys - completing questionnaires face-to-face, via phone or online

Interviews - asking and probing respondents to get detailed responses. Good for open questions.

Focus Organizations - moderating a dialogue with users. Ideal for recording key concerns and messages

Ethnography - observing customers using products in their natural environments (e. g. at home)

Product clinics and lab tests - having users try products and give responses (e. g. , style tests)

Now, researcher should take appropriate information for the intended purpose of the research and unrelated information should divide from there. This all data has set up by some other agencies and the data could be found from

Government information - this is fantastic spot to start your research if you're a small business

Public libraries - another good places to find statistical data and information

Chambers of business, trade boards, city hall and local government offices

Phone directories and yellowish pages

Online and offline market research sources

Chapter: 4. 0 Sustainability and corporate and business social responsibility:

Sustainability and corporate and business social duties is one of the significant parts in the Holiday Inn. This activities related to the environmental and social duties which performed by the vacation Inn. Holiday Inn is very lasting for the environment as they have got plan to reduce emission of CO2 in the surroundings, reduce energy intake and water use by the finish of this 2012. Trip Inn is area of the IHG hotel brands and IHG hotels made contribution in economics and conditions over the entire year. Relating by Oxford Economics table IHG has made practically two million careers in US, UK and Brazilian and made good contribution in their economics. IHG has thought they can make most dissimilarities in environment and community by using their corporate responsibility (CR) strategy. The strategy, which is based on new innovation and collaboration in those areas, which makes more business because of their company.

Environment: pouring environmental sustainability three-year target to reduce energy ingestion among 6% to 10% by the finish of 2012 through Green engage.

Community: creating local financial opportunity especially through the IHG Academy, and by giving disaster pain relief through the IHG Shelter in a Surprise Programme.

Holiday Inn sustained to work in academic yr 2011, IHG mature management they met with Harvard University's students to assessment corporate and business responsibility (CR) survey as well as sponsored the Cornell University or college to start a report entitled 'Developing a Sustainability Dimension Framework for Hotels: Toward an Industry-wide Reporting Structure'. As part of the International Tourism Partnership (ITP) and the entire world Travel and Tourism Council (WTTC), we work on our insurance plan that has positive effect on financial, environment and public area along with sharing knowledge and information with our competitors. Each is the new creativity and activities by the Holiday Inn always ensure and be sure it does not have any bad impact in environment and community.

The following table will show the achievements and then priorities duty for the future

IHG hotels with over 4, 400 hotels worldwide, they have got such an possibility to help tourism sensible from the power they use, to the economic opportunities they create and the support they can provide to neighborhoods in times of devastation and problems.


After inspecting (find appropriate term) each is the above duties, which were, demonstrate that Holiday Inn is one of the very most successful and well known hospitality organisations in the travel and leisure industry. Their products and services meet customer expectation as well their stakeholder pursuits are deeming effectively. They can be tackling with current crisis and marketing issues efficiently by maintaining federal policy and regulations. Marketing activities such as segmentation, focusing on, positioning, prices, promoting and syndication strategy is more determined and reliable than other hospitality industry. Holiday Inn builds up their company with modern technology and new development to be able to provide superior customer services plus they take regular market research for their products and services to build up their company. Environment and community is exterior stakeholder of the Holiday Inn plus they have brawny impact on the company, for the reason that sense Trip Inn always contribute in community and environmental aspects so that they engaged with company for better bundle of money.

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