Marketing Mix & Plan of IHG

Organization Selected : IHG
Question :

As being appointed as a marketing manager some of the assessment questions are given as under:

  1. With comparing InterContinental Hotels Group plc with another provide elements of marketing mix in gaining business objectives.
  2. Evaluate and develop marketing plan for InterContinental Hotels Group plc With serving their importance.
  3. Develop a marketing plan of InterContinental Hotels Group plc.
Answer :


Marketing is identify as a management and effective process via which services and goods move from concept to the client (Astuti, Silalahi and Wijaya, 2015). Marketing is essential and important concept for the organisation to increase customer's base and accomplish better results within predetermined period of time. In this report, given enterprise is IHG Company (InterContinental Hotels Group plc) which is a British multinational hospitality organisation. Thus report only divided into two tasks which cover marketing mix and marketing plan of an organisation. Both are essential and effective part of marketing which help an enterprise to attract large number of customers easily.

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P3  7P's of marketing mix used by two organisation in similar sector to achieve overall business objectives

Marketing mix is identifying as an essential and important part of the company which help them to introduce their new products and services at market. In this company use their different promotional channels to easily attract customers. Marketing mix includes 7P's such as product, place, promotion, price, people, physical evidence and process. Thus, there are two organisations in same industry which are used marketing mix are determined as under:

Marriott is using the marketing mix due to changing dynamics of global hospitality industry (Bahadir, Bharadwaj and Srivastava, 2015). Main aim of Marriott to use marketing mix is to increase the competition among its strong competitors by improving the performance and productivity of the services provided by company.

Marketing Mix

IHG Company



IHG is a holding company; it means they not produce product and contact with the customers directly. Company acquires the multinational brand and enlarging their business operations across the globe. However, business generates their revenues by marketing the accurate franchising and handling hotel operations properly. The rooms are big with roomy toilets attached to them. Every room of hotel is equipped with modern and effective amenities like plasma TVs, refrigerator, private bar, air conditioners, telephones and wi-fi connection.

Marriott has a broad range of operations with nearly in 30 hotel operations such as Classic Luxury, Classic Premium, Distinctive Luxury, Classic Select, Distinctive Premium, Distinctive Select and Classic Longer-Stays. Company aims to provide excellent quality services and facilities to its customers by these hotels. The hotels of Marriott include Ritz-Carlton, Sheraton, Delta Hotels, Renaissance, Le Meridien, Westin, Aloft Hotels, Bulgari Hotels and Resorts, Fairfield, Residence Inn and Courtyard.


IHG created the brand or product with the opinion to link with each type of person around the world. Company mainly classified their markets into part of standard of living of customer i.e. midscale, luxury, and high scale and create price accordingly (Fan, Lau and Zhao, 2015). Pricing strategy of hospitality sector is relying on the brand or product that it is targeting with.

The pricing strategies are implemented keeping in mind of the economic condition of consumers. Marriott targets upper class peoples for serving their quality and expensive services. Company has adopted premium price strategy for their products and services.

Company is interested in providing quality and long lasting experience to the customer for maintaining their loyalty. Company believe in serving with integrity and excellence.


InterContinental Hotels Group plc has its properties across 100 nations in all over the globe. Business has majority of their properties in certain nations such as in South America they has more than 3781 properties and that nation with 642 hotels in European countries and applied by Asia with 498 hotels.

Marriott is one of the largest hotels chain in the world with over 5700 hotels in 110 countries. Company has a global presence such as India, China, Pakistan, Dubai, Argentina, Thailand, Venezuela, Indonesia, Malaysia, Peru, Canada, Spain, Turkey, Sri Lanka, Bangladesh, Portugal, Mexico, Switzerland and the United Kingdom. Company chose the distinctive and unique places for their hotels such as highways, near airports and in central and vital parts of cities where the demand and population is high.


In order to promote their services and products to customers, business follows word of mouth. It is more essential and significant for the organisation to attract large number of customers within predetermined time period. It is also essential for the organisation to beat competition and achieve better results in given time period. In today, technology is ultimate and biggest benefits for the organisation to effective introduce their services to the clients.

Company uses various digital platforms for promotion to increase its brand image. Marriott offers various strategies for promotion like loyalty program in which company provides free merchandise, vacations, gifts, bonus, upgrading of the room for attracting potential customers. Company received various accolades for their quality products and services (Bowie and et. al., 2016).


Physical environment and infrastructure are critical for service delivery and service marketing. For a IHG hotel the significance of physical infrastructure and physical environment is much more because this is an effective part of the service experience (Shaw, 2016).

The physical appearance of Marriott hotel is quite attractive. The

Hotel ambience along with the different types of lighting creates a long lasting physical experience which enables the customer to visit again.


Processes are as essential for a service sector as they are for a manufacturing or developed one. Without correct processes or activities a hotel chain like IHG company cannot accomplish efficiency and effectiveness within predetermined time period. A luxury hotel company wants to be extremely process oriented (Kraus and et. al., 2016).

The company ensures that the customer get what they want. Easy and convenient process will lead to customer's satisfaction. Company ensures hygienic and clean environment in their hotels rooms. Marriott works with a transparent process which is very easy to see, judge, operate and is user friendly.


The significance of the people facet maximise in any type of services organisation because it is persons who eventually distribute services to the clients. The major competitive benefit of a service business like a IHG Hotel comes from the persons it employs. The workers have played the most significant role in the achievement that IHG has enjoyed over the duration. As a hotel administration chain its main capability is derived from its people and processes.

Company knows the necessity of serving its customers with quality services. The staffs of Marriott are highly trained by the company to provide quality and standard services to the customers who visit the hotels. Company has gained customer satisfaction and trust of their stakeholders (Lam and Harker, 2015).

M3 Evaluate different tactics applied by organisations to demonstrate how business objectives can be achieved

The business organisations with their various organisational culture follow the tactics to accomplish their respective business objectives. IHG utilise marketing mix in their marketing planning procedures to attain the organisational objectives and goals within given time duration. Other organisation such as Marriott which is contemporary to IHG use a marketing segmentation process to attain their organisational objectives. The market segmentation process of Marriott involves following process:

  • Initially they determine the market for enterprise, for example target market.
  • Secondly, development of market segments takes place.
  • Measurement of the various segments are finished for specific criteria.
  • Segment process is constructed.
  • The attractiveness of the segments is evaluated.
  • The target markets are chosen.
  • Positional strategy of the enterprise is formed and implemented.
  • Evaluation as well as feedback process of segmentation.

The IHG utilise extended 7p's marketing mix in its company for the accomplishment of goals and objectives, the process is as follows:

Product: IHG sells its products that are popular for its traditional design that is also applicable for customers to use.

Price: Intercontinental Hotels Group apply is a competitive based pricing strategy which will help them by increasing customers base (Srinivasan, Rutz and Pauwels, 2016).

Place: IHG sells its products or services via 2 marketing channels. The first is where it sells instantly to its client via its online website. The another is where it trade to wholesalers who then deal to various retailers located all over the state.

Promotion: In order to advertise products and services, IHG use different social media platforms with a focus on Facebook, YouTube and Twitter due to the full monthly usage of these.

Process: IHG has an online delivery procedure, where orders related to the services or products are acceptable in the computer system as well as based on these orders, the applicable product from the stock list is move to the delivery service provider.

People: Intercontinental Hotels Group has different number of people which are working under its sales team that play a critical role in its marketing efforts (Lindberg, Johnsen, Kristensen, and Teräs, 2016.).

Physical evidence: IHG has an online website or application that is user-friendly and allows visitors to view business products in broad quality picture taken from different angles.

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P4 Marketing Plan of IHG Company

Marketing Plan

It is refer as an essential and significance part of marketing which help an enterprise to provide their detail information to the customers. It includes entire data about business entity like, overview, vision mission, SWOT Analysis, Segmentation, Targeting and Positioning analysis, Marketing budget, monitoring and controlling. It is an effective process that covers some phase which is explained as under:

1: Executive Summary

Main and foremost purpose of conducting marketing plan is to innovate new product such as services according to the customer's expectation (Lovelock and Patterson 2015). It is more essential and important for the company to previously identify needs and wants of customers. So in the hotel manager is responsible to design room environment as per the customer's expectation.

2: Introduction

InterContinental Hotels Group plc or IHG is a British multinational and biggest hospitality organisation. It was founded by Patrick Cescau, Keith Barr in 2003in
Denham, Buckinghamshire,United Kingdom. Company has approximately 800000 guest rooms and about five thousand hotels across virtually 100 countries. IHG includes certain brands like; Candlewood Suites,Even Hotels,Crowne Plaza, Holiday Inn, Hualuxe,InterContinental, Hotel Indigo,Kimpton Hotels and ResortsandStaybridge Suites. Unique selling preposition of InterContinental Hotels Group plc is very relaxed environment.

Vision: The Emerging Leaders Network is an association comprised of IHG Owners Association and of InterContinental Hotels Group plc corporate communities members that gives a vehicle for operators, brand team members an young owners to develop their skills, knowledge and network with other business owners and offers younger generational viewpoint and effort in significant decisions in maintain of enhanced owner ROI and accomplishing IHG’s objective of “Great Hotels Guests Love.”

Mission: Mission statement of InterContinental Hotels Group plc is “To make a thriving community for young IHG owners and to make sure image within the Owners Association and with IHG. To give growth and enlargement chances and to promote collaborative relationships.

3: Current Situation Analyst

This part of the marketing plan includes some aspects which are determined as under:


: It is another important and main part of marketing plan. This step of marketing is also known as company’s marketing strategy (Pike, 2015). STP stands of segmentation, targeting and positioning of the company. STP of IHG Company is described as under:


Market segmentation

The group's brand


Customer Segment



Hotel with the biggest level of amenities, often small chain or boutiques with top-class services and facilities and very high rate of room.

A mix of leisure, business, dependent on location, often with a biggest proportion of international guests.

Upper upscale

Holiday inn express

Well-appointed hotels with full, biggest or effective quality amenities including bathrooms and spacious rooms. High room rates mainly located in main cities or in resorts.

Predominantly business or enterprise often with a effective proportion of international clients.

Midscale(Limited service)Holiday inn express candlewood suites.


Candlewood suites

Reduce bar, fob and meeting facilities.

Predominantly domestic guests, both leisure and business.

Market segmentation is segregating the marketplace on different basis, mainly the marketplace of hotel is segmented in the form of large number of person capacity. Market segmentation of hotel is classified on 5 basis class. The kind of market segmented for such hotel are mind-scale, upscale, luxury etc.

Market segmentation

The group's brand


Upper upscale


Midscale(Limited service)Holiday inn express candlewood suites.

Holiday inn express

Candlewood suites

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Targeted market by InterContinental group are mainly the people with capability to pay amount to their luxury hotels. All brand of the company are mainly luxury that provides great experience of luxury. Hotel mainly targeted upper upscale class person with intercontinental hotel, hotel indigo and stay bridge, upscale with crown plaza, mid-scale with holiday inn, holiday inn spree, holiday inn select.


IHG hotel is a luxury group in all over the globe. Even today the hotel never compromises in their product quality. Whenever the IHG comes in the gust's mind they think regarding the luxuries hotel in reasonable and accurate price. However, hotel doesn't target the luxury segment of market but provides the luxury amenities in order to make them feel better that they are the targeted or valuable guest. Therefore, the positioning of such hotel in today's scenario or world is the hotel with better and luxury services and amenities.

SWOT Analysis

It is more effective and essential part for the IHG Company in order to know about their weakness, strength, threats and opportunities. This analysis also essential for the organisation to make strong and effective position in marketplace.


  • Strong workforce is identifying one of the main and biggest strength of IHG Company.
  • It is a well-established and famous brand name in all over the globe (Sethna, 2015).
  • In the organisation, employees are highly satisfied which will help an enterprise to retain strong position at market.
  • One of the main weaknesses of this hotel is large number of hotel which highly effected on business operations.
  • Poor economic security systems.
  • No economic hotel Brand.


  • The organisation can draw the criticism from the environmentalists for its poor waste management practices and inability to integrate sustainability in business operations.
  • The company may lose efficiency due to poor inventory management practices. The shortage or excessive inventory can either result into
  • The cash shortage or insufficient current assets negatively affect the liquidity position and harms the overall business performance.
  • Insufficient budget for the marketing and promotion activities weakens the firms’ ability to expand the customer base and encourage repeat purchase.


  • Changing legal view is identifying as main threats for the IHG Company.
  • Fluctuation in foreign currency is another threat for the hospitality sector which highly impact on its operations.
  • One of the best and main opportunities for the organisation is to grow in travel market.
  • Changing trends in hospitality sector is another opportunity for the organisation to achieve better results within predetermined time period.


  • The exponential growth in the population, and particularly in the existing or potential customer segments is a great growth opportunity for the business organisation.
  • The changing customer needs, tastes and preferences can act as an opportunity if the business organisation has good market knowledge.
  • The development of new technologies to assist the product/service production and delivery process can be exploited to embed the innovation in business operations.
  • Rise in the customers’ disposable income and increase in the affluent customer base can be taken as an opportunity to introduce more high-end products.

4: Objectives and Goals

Marketing Objective

  • To increase sales up to 20% within 2 years time of period.
  • To attract 75% of guests within 2 months of time period by application of new product development.
  • To add 10 other effective services in hotel within ½ year to maximise customer base.

5: Target Audience

In marketplace, there are different competitors of IHG Company such as Hyatt, Starwood, Hilton, Choice, Marriott etc. All these are highly effect on business operation and sales of company in direct manner.

6: Marketing Strategy

It is identify as a part of marketing mix which includes 7P's are determined as under:

Product: IHG Company provide rooms facility with big roomy toilets attached to them. Each and every room of hotel is fully equipped with modern as well as effective amenities like plasma TVs, private bar, air conditioners etc.

Price: Pricing strategy of company is relying on the brand or product that it is targeting with.

Distribution Channel: InterContinental Hotels Grou began adding its all portfolio of approximately 4,600 properties in the globe to International, Ltd.

People: In the organisation, different employees are work with having purpose to increase sales and profit. The employees have played the most essential role in the accomplishment that IHG has enjoyed over the duration.

Process: Supervising and handling a business operation in hotel is a process intensive activity. The procures are one of the major competitive reward that IHG has over its rivals.

Physical Evidence: Physical infrastructure and environment quality is one of the major value propositions presented by the company to its customers.

Promotion: In order to promote their services and products to the customers or clients company follows word of mouth.

7: Marketing budget

Monitoring and Controlling: It is identifying as an effective and important step of marketing plan. In this manager of IHG Company play vital role for managing and controlling all activities of marketing plan in an effective and efficient manner. Beside this, manager makes better policies and indentifies proper sources of fund. With the help of this they can easily collect accurate amount of capital and do their business operations and activities in systematic and successful manner.

8: Marketing implementation plan

In order to implement marketing plan in successful manner, company need to provide training to their those employees who have lack of knowledge about the technology. Thus, it will assist an organisation to achieve better results within predetermined time period.

9. Evaluation Strategy

Evaluation is an essential part of marketing: it supports an organisation to eliminate ineffective strategies and create an overall plan that assist build their business. By scheduling regular evaluations of marketing plan, business can save wasted amount of capital by modifying as well as eliminating campaigns that are not reaching their target market and garnering the response you need.

10: Appendix



Raw materials






Travelling expenses





From the above mentioned report, it can be concluded that concept of marketing is significant for the development and success of company. Beside this, marketing mix is more significant for the organisation to introduce their products or services at marketplace. Along with this, marketing plan is also useful and valuable part for the business to describe their all details to the clients. Thus, it will help a company to retail strong relation with customers.

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