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BACHELOR’s (HONS) OF ARTS BUSINESS IN
HOSPITALITY MANAGEMENT
BUSINESS SYNOPTICS (BM3321)
MARKET ANALYSIS OF IHG
MODULE LEADER: BIKRAM MAHARJAN
SUBMITTED BY: YUBRAJ BALAMI (00014633)
Acknowledgement
I am using this opportunity to express my gratitude to each and every one who supported me
while doing this assignment. Fore and foremost I would like to thank our lecturer as well as the
great thinker Mr. Bikram Maharjan important as well as valuable guidance. I am sincerely grateful
to him for sharing his views as well as being available whenever I needed him.
I would specially like to thank my fellow friends as well for helping me with everything that I
needed.
I found this activities is more important than anything. It has taught me the way to understand
the subject topic. I found it as a practical way to understand and analyses the arguments and
statement presented in course. I hope that I’ll get more opportunities in the future so that I can
understand the topic in easy and efficient way.
Table of Contents
Executive summary ...................................................................................................................... 5
Company analysis ........................................................................................................................ 6
Introduction (the company overview) .......................................................................................... 6
Current status ........................................................................................................................... 6
Future orientation...................................................................................................................... 7
Mission statement ..................................................................................................................... 8
Vision...................................................................................................................................... 8
Situation analysis........................................................................................................................ 8
Market Overview...................................................................................................................... 8
Market trend and evolution......................................................................................................... 9
Customer/consumer behaviour:..............................................................................................10
Competitor profile: ...............................................................................................................10
Environment analysis ...............................................................................................................10
Key points to success ...............................................................................................................11
Marketing Strategy...................................................................................................................12
Segmentation/ targeting/ positioning ..........................................................................................13
Segmentation.......................................................................................................................14
Target market.......................................................................................................................14
Positioning ..........................................................................................................................14
Strategy summary ....................................................................................................................15
Competitive advantage .............................................................................................................15
Marketing mix strategy ................................................................................................................16
Product...................................................................................................................................16
Pricing....................................................................................................................................16
Place ......................................................................................................................................16
Promotion...............................................................................................................................17
financial analysis.........................................................................................................................18
Integrated marketing communication. ............................................................................................21
Implementation and control and contingency plan........................................................................22
Conclusion .................................................................................................................................22
References ...............................................................................................................................23
Executive summary
The report is based on the comprehensive analysis of the strategy that Intercontinental hotel group has
taken in the past, present and the strategy that the company needed to take in the future in order to remain
in the same position that they are now.
This report shows the strategic marketing plan of Intercontinental hotel group. The way that they have
been doing in the previous days and the way they are doing now. And also the marketing that they can do
in future. With the older references the report shows the plan for intercontinental hotel group. This report
contains the short introduction of the company, company analysis, marketing plan component, situation
or market analysis and competitor’s analysis. The report also shows the product and services that
Intercontinental hotel group can provide in the future. It also include the mission, vision, objectives.
Company analysis
Introduction (the company overview)
IHG (Inter-Continental Hotel Group), the British multinational hotel company in present scenario is one of
the most dominant, superior and leading hotel group of the world. IHG stands with 5,174 hotels with
766,000 rooms stand strong with other staunch and strong competitors. IHG has never fallen down after the
IHC is changed into IHG in early 20S. however the history if IHG traces back to 17th
century when William
Bass opens the brewery in Burton-on-Trent, UK. It was 1998 when bass started the process by acquiring
the first luxury InterContinental hotel established on 1949, Bass at that time had already acquired the
international hotel brand Holiday Inn hotel in Memphis in 1988 and the north America division in 1990.
After that IHG started expanding various brands and continue acquiring the hotels around the globe.
As a result today there are 5,174 hotels around the world under the brands of IHG. Today they have the
world’s best brand under them. Holiday inn, crown plaza, intercontinental hotel & resorts, kimpton hotel,
hotel indigo, even hotel, halauxe, holiday inn express, holiday inn club vacation, holiday inn resort,
staybridge suit, candlewood suites, IHG reward club are under them. It operates almost in 100 country
around the globe with 350,000 employee engaged on the day to day operation. The company is big so do
the revenue. As per 2016 report it operate in 100 country with the revenue of $1.715 billion, $707 million
operating income and net income of $417 million.
As the company’s strategy is one of the core factor for the present situation of the company. Value creation,
superior shareholder return, disciplined execution, doing business responsibly are said to be its main
strategy. However, capturing the market by different brands are one of the major tactics that the group has
taken. Analysing the environment and targeting the particular segmentation with the particular brand or
developing the brand with the view of capturing the market are often seen in the case of Intercontinental
Hotel Group
Current status
 IHG hotel group is one of the leading hotel in the world. It has 5,272 leading hotels with 785,544
rooms under 12 different brands. (Intercontinental hotel group, n.d.)
 Return surplus funds to shareholders. In February 2017, we proposed a further $400 million return
of funds to shareholders via a special dividend with share consolidation. (Intercontinental Hotel
Group, n.d.)
 Total Gross Revenue 2016: $24.5bn. This comprises: • Franchised hotels = total rooms revenue •
Managed hotels = total hotels revenue • Owned and leased hotels = total hotels revenue (Only
owned and leased hotel revenue is directly attributed to IHG.) (Intercontinental Hotel Group, n.d.)
 - In the Americas and Europe, over 90 per cent of IHG hotels are franchised. In Greater China,
that figure rises to more than 98 per cent. (Intercontinental Hotel Group, n.d.)
Future orientation
 10 Priority markets: US, Middle East, Germany, UK, Canada, Greater China, India, Russia and
CIS, Mexico and Indonesia. Our priority market represent 87% of the IHG System and 89% of
the IHG pipeline.
 Continue expanding business all over the world by franchising, managing and Om am owned of
lease basis.
Mission statement
According to the intercontinental hotel group, they have divide d their
vision into 5 winning ways. And they are
Do right thing
Show that we care
Aim higher
Celebrate the difference
Work better together
Doing right things defines their own character. They mean to say that
they will do right thing whatever they will do. Show that we care is for
guest. They had also set providing customized as well as standard service
as their mission. Talking about higher point I think they have already
proved us the result of aiming by being one of the top hotel group of the
world. IHG believes that, what makes difference is the knowledge skills
and the performance of their staff. They focuses on retaining profitable
staff and make them work in a team.
(Intercontinental hotel group , n.d.)
Vision
Vision is something that defines where you want to see your company in near future. As vision is one of
the most important factor, IHG have also set the vision for their companies. “Great Hotel Guest Love” is
the vision of the IHG. Everything that they wanted in future is to be the great hotel with lots of love of
guests. Guest love defines about the brand reputation. As they are successfully moving towards their
vision. Today they have the hotels brands with the best brand reputation. They are already successful to
win the heart of their guests.
Situation analysis
Market Overview
Global hotel industry demand is driven by economic growth and an increasing trend for domestic and global
travel. Over the long term, the lodging industry has grown broadly in line with Gross Domestic Product
(GDP). However, in the US, the largest market in terms of number of rooms, growth in consumer spend on
lodging has exceeded GDP growth by 2.6 percentage points per annum over the last 50 years. International
tourist travel to increase from 1.2bn to 1.9bn tourist arrivals by 2026 (Intercontinental hotel group, n.d.).
With the growing spending capacity of general public and there intensity of travelling the different places
of the world has ultimately increased the demand of the hotel industry. As a result today tourism and
hospitality industry is one of the biggest sector on business. In term of investment, in term of employment
and in term of revenue generation hospitality and tourism market today is in top and trending.
According to the toonz.com the estimated hotel around the world is about 187000. (tooz.com, n.d.) If the
hotel around the world is 187000 then the IHG group has 5272 hotels worldwide which means it covers
2.81 percent of market share globally. However the market has got other group of hotel like Marriot, Hilton,
Accor group etc. competing along with intercontinental hotel group. In 2016, InterContinental Hotels Group
was the largest hotel company in the world in terms of revenue, generating around seven billion U.S. dollars
more than its closest competitor, Marriott International. Among the listed global hotel groups, Choice
Hotels International had the smallest revenue at just 920 million U.S. dollars. However, Choice had 6,376
hotels worldwide in 2015 – around 1,500 more than InterContinental Hotels Group. Despite being a British-
owned company, the majority of the group’s revenue is generated in the Americas. The group appears to
be popular in the United States, evidenced by the fact that is was given a Customer Satisfaction Index score
of 78 out of 100 by Americans in 2017 (istatista , 2017). Hence the intercontinental hotel group in present
context is the biggest hotel group with approximately 2.85% of market share. It is big in the context of
revenue generation. However there are more other company which are doing well and is in competition.
Market trend and evolution.
The market trends of the hospitality does not remain unchanged. It is all about the market trends in
hospitality industry because a different emotion of mood may arouse in different time.
IHG research reports 4 paradox that are driving the decision that customer makes. They defines this paradox
as the element to be followed if anyone wanted to be in the market.
1. The paradox of separate but connected; seeking the connection to different types of people with
different brands. One of the marketing strategy that IHG has taken is the segmentation, targeting
and branding. They tries to connect different people with different brand.
2. The paradox of abundant rarity; who is the best and luxury is the present trends in hotel industries.
A desire for luxury to be both scarce and viability. Hence IHG establish it hotels with the world
luxurious brand.
3. The paradox of seeking the better me and better we; employee are always an important part. The
best employee is the root to success. However the organisation itself needed to be good and do
well. Today the companies with ethics and social responsibilities possess the higher value in any
organisation.
4. Do it myself and do it for me in my way; A desire to be in control while not being the controller.
The 2013 IHG Trends Report highlighted Invisible Travellers… they go from home-printed
boarding pass to in-flight Wi-Fi to app-ordered transportation to hotel kiosk, to app-ordered food.
Many Invisible Travellers prefer the paradoxical personal yet person-less travel experience. In
contrast, Gen Z appreciate the convenience benefits of the digital world. However, they also desire
the experience of human contact. Although true Digital Natives, Gen Z seek person-to-person
contact. (IHG (intercontinental hotel group), 2017)
Hence all of these point defines the present trend as well as the solution that hotel industries should follow
if they wanted to tackle with the trends.
Customer/consumer behaviour:
IHG is the established group in hospitality world. Not only established it is on the sixth rank to generate
the revenue worldwide. With more than 5000 hotels from 12 different brand IHG stands among the leading
hospitality group. However consumer behaviour is defined as the action that consumer shows on the
certain products.
Consumers are seen to be attracted towards the different brand of Intercontinental Hotel Group.
Intercontinental hotel group is in top position on the contest of revenue generation. However they are in
the sixth place on the market share. They even won the award for the top workplace which means their
employee are more than satisfied which automatically increase the consumer satisfaction. They are the
one who established the concept of luxury hotel in boarder sense.
Competitor profile:
Environment analysis
PEST analysis
Political:
Stable political environment is the key factor for the success of any business organisation. Stable
government of the UK has highly influenced the success of the intercontinental group. Even the group get
the success mostly on USA. Where the stable government of USA has influenced the success of the
organisation.
Economical.
Economic factors are the key for the success of any country. If the country is economically stable then
only the company inside that country will do well in the market. However politics and the economic
factors are to part of a same coin. The company cannot get success if the country is politically stable but
instable economically, vice versa. Hence the economic condition of the United Kingdom had influenced
the organisation to reach on the position that they are in today.
Socio-cultural.
Hotel industries are highly affected by the environment factors. If the environment is not safe or feasible
for the hotel then it is like impossible to stay in the market. There are many things that hospitality need to
focus on before commencing the hotel business. There are culture, tradition that are followed in that
society. Hence even the British culture suit the business plan of the IHG and as a result it is in the top
position in the hospitality industry.
Technology
UK is among the developed country. Development of infrastructure is most important to hotel industry.
Technology is the core factors that helps to gain competitive advantages. Hence the intercontinental hotel
must accept the changes on the technology with time. Only then they will able to gain the competitive
advantages. However the hotel has accepted the change on technology.
SWOT analysis
Strength Weakness
 Brand
 Strong company workforce
 Satisfied employee
 Problem in operation due to large no of
hotels.
Opportunity Threat
 Growing travel market
 Changing trends in hospitality
 Foreign currency fluctuation
 Changing legal views.
Key points to success
Without any key factors the organisation ca never get success in the business. Even IHG has that key
factor due to which it is in the present position. And they are as follow.
 The Winning Model is framework for delivering superior value creation through the brands, our
people and systems.
 Operation of a targeted portfolio, focusing on the most attractive markets for IHG and in the highest
opportunity segments, with an asset-light business model.
 Through disciplined execution we prioritize investment in our technology platforms and our people,
as well as delivering operational efficiencies.
 A commitment to operating our business responsibly underpins our entire strategy.
(Intercontinental Hotel Group, n.d.)
Marketing Strategy
Strategy are the long term plan needed for organisation to get in the way that the organisation wanted to.
Marketing strategy is the long run plan that are created to figure out the marketing plan that will help
organisation to obtain the goal and objective. IHG has been adopting the marketing through new
technologies. Advertisement through the mobile apps and the websites are one of their key strategy of
marketing. IHG is Focusing different customer and developing the brand for them. They have been seen
adopting the differentiate strategy with the view of attracting the different kind of customer.
Segmentation/ targeting/ positioning
IHG segments
Market segments The Group’s brand Description Customer segment
Luxury - Hotel with the highest
level of amenities, often
boutiques or small
chains with top-class
facilities and services
and very high room rates
A mix of business and
leisure, dependent on
location, often with a
high proportion of
international guests
Upper upscale InterContinental Well-appointed hotels
with full, high-quality,
amenities including
spacious rooms and
bathrooms. High room
rates. Usually located in
major cities or in resorts.
Predominantly business
often with a high
proportion of
international guests.
Upscale Crown plaza
Stalybridge suites
Hotel indigo
Full service but with
fewer amenities than
upscale. Comparatively
lower room rates than
upscale
Predominantly domestic
guests, both business and
leisure.
Midscale (full scale) Holiday Inn
Holiday Inn select
Holiday Inn spree
Full service but with
Fewer amenities than
upscale. Comparatively
lower room rates than
upscale
Predominantly domestic
guests, both business and
leisure.
Midscale(limited
service)
Holiday inn express
Candlewood suites
Reduce fob, bar, and
meeting facilities.
Predominantly domestic
guests, both business and
leisure.
Economy/budget - Cheapest most basic
hotels with limited
facilities
Predominantly domestic
guests.
Above table defines the market segmentation on the basis of people’s choice, targeted market by IHG and
their brand to target that markets.
Segmentation
Market segmentation is segregating the market on various basis. Basically the market of hotel is segmented
in the basis of the people’s capacity. Generally the market of the hotel is segregated on 5 basic class. The
types of market segmented for hotel are, luxury, upper upscale, upscale, mid-scale, economy/budgeted.
These kind of hotel can be found in the market.
Target market
Targeted market by IHG group are generally the people with ability to pay to their luxury hotels. Their
almost all brand are luxury based brands gives great experience of luxury. They targeted upper upscale
class people with intercontinental hotel, upscale with crown plaza, hotel indigo and stay bridge. Mid-scale
with holiday inn, holiday inn select, holiday inn spree. It also focused on the people of mid-scale with its
brand holiday inn express and candlewood suites. Therefore, holiday inn targets 4 different market with
its brand.
Positioning
IHG group is one of those few hotel to start the luxury hotels in the world. Even today the brand never
compromises in the quality of their product. Whenever the brand of IHG comes in the mind of the guest
they think about the luxurious hotel in reasonable price. However they doesn’t target the luxury market
segment but gives the luxury amenities to make them feel that they are the valuable customer. Hence the
positioning of the intercontinental hotel group in today’s scenario is the hotel with luxury amenities and
services.
Strategy summary
Branding and positioning is the most important aspect to any company either it is hotel of any other type.
Branding and positioning gives identification to the company. Thus IHG focus on the branding and
positioning to their hotel. They successfully established their brand to prove as one of the best brand in
the world. Hence the branding of the marketing strategy is one of the focused strategy to them.
As the company focuses on the branding, they are also focused on the differentiation. They come up with
the new ideas as well as model to attract their customer portfolio. As branding helps to give the identity
to the product, differentiation help to established different brands. As IHG had successfully done. They
segment the market and target them with their unique product which is also known as differentiation.
Competitive advantage
IHG has never backed down to surprise us with its great sense of competition. IHG today is one of the
leading organisation with no doubt. The way it sees or treats the guest is just unbelievable. To give that
satisfaction human resource is the key factors. From it we can say that they have got the best human
resources. Everyone is doing hotel business but IHG is doing it in different way. That is why IHG group
reached the sky in short period of time.
Biggest hotel loyalty program;
As Sift pointed out in May, IHG has 92 million members worldwide, whereas Marriott has 54 million
and Hilton has about 51 million. That’s a lot of loyalty program members. Given the fact that all the big
brands, IHG included, are launching major direct booking pushes aimed at building up their loyalty
numbers, this number is significant. (Ting, 2016). IHG has the biggest no. of member worldwide which
is more than their rivals. It holds the biggest loyalty program due to which it if growing more and more.
Owns the world largest hotel brand.
IHG own the world largest hotel brand holiday inn 3,651 properties around the world due to which it is
well known among the most people in the world.
Own the hotel with big brand value.
IHG owns 12 different hotel brand with the greatest brand value. As the brands are known worldwide,
they have the biggest brand value. Holiday inn, crown plaza, intercontinental hotel etc. are known
worldwide. Because of its popularity the value of brand has increased as well.
Biggest no of hotels coming next
IHG already own more than 5000 hotels in the world with more than 700,000 rooms worldwide. However
they are increasing it in aggressive way. They had already signed on 35000 rooms to be added under the
brand of intercontinental hotel group where 45 percent is already under construction.
Staff satisfaction
Employee are the main component of the hotel industries. Perfect workforce motivation leads to the
ultimate profit as well as good public relation helps organization in many ways.
Marketing mix strategy
In very short span of time IHG became one of the leading multinational hotel group. British company was
officially formed in 2003 which became leading company in only 15 years of time periods. It is said that
time doesn’t matter. What really matters is the strategy and the implementation. Let’s see the marketing
mix strategy of Intercontinental hotel group.
Product
IHG is the holdings company which means it does not directly produce the product and directly contact
with the customer. It creates the brand and bring it to the market. IHG is acquires the multinational hotel
brand and expanding its worldwide. However it generates its revenue by selling the right by franchising
and managing the hotel along with owning the hotel worldwide.
Pricing
IHG developed the brand with the view to connect every types of people around the globe. It basically
divide the market into the segments of the standard of living of guest i.e. high scale, luxury or midscale
and keep price accordingly. Pricing strategy of the IHG group depend upon the brand that it is targeting
with.
Place
IHG has its properties around 100 country worldwide.it has majority of its properties in south America
with more than 3,781propeties and that continues with 642 hotels in Europe and followed by Asia with498
hotels, north America 40 Australia 35 and Africa 23. Which shows that must of their properties are in
developed area. As they are the group known for the luxury hotel, the city centre or down town is the main
location for them
Promotion
Hotel mostly lies on the word of mouth. The good word of mouth is always a plus poet for any
organisation. And the word of mouth seems quite effective as there are many other competitors competing
with intercontinental hotel group.
Technology in today is the ultimate advantages if they are used in efficient way. After the word of mouth
company also believe on word of mouse. It is the fastest way to reach among people.
However it has sponsored the travel agents and does the promotion through them to get to customers.
Financial analysis
comparative Group statement of financial position
31st dec 2016 2015
Note $m $m ammount percentage
ASSETS
Property, plant and equipment 12 419 428 -9 -2%
Goodw ill and other intangible assets 13 1,292 1,226 66 5.4%
Investment in associates and joint ventures 14 111 136 -25 -18%
Trade and other receivables 16 8 3 5 167%
Other financial assets 15 248 284 -36 -13%
Non-current tax receivable 23 37 -14 -38%
Deferred tax assets 7 48 49 -1 -2%
Total non-current assets 2,149 2,163 -14 1%
Inventories 3 3 0 0%
Trade and other receivables 16 472 462 10 2%
Current tax receivable 77 4 73 1825%
Other financial assets 15 20 0 20
Cash and cash equivalents 17 206 1,137 -931 -82%
Total current assets 778 1,606 -828 -52%
Total assets 2 2,927 3,769 -842 -0.22
LIABILITIES 0
Loans and other borrow ings 20 -106 -427 321 -75%
Derivative financial instruments -3 -3 0 0%
Loyalty programme liability 32 -291 -223 -68 30%
Trade and other payables 18 -681 -616 -65 11%
Provisions 19 -3 -15 12 -80%
Current tax payable -50 -85 35 -41%
Total current liabilities -1,134 -1,369 235 -0.17
Loans and other borrow ings 20 -1,606 -1,239 -367 30%
Retirement benefit obligations 25 -96 -129 33 -26%
Loyalty programme liability 32 -394 -426 32 -8%
Trade and other payables 18 -200 -152 -48 32%
Provisions 19 -5 -5
Deferred tax liabilities 7 -251 -135 -116 86%
Total non-current liabilities -2,552 -2,081 -471 23%
Total liabilities 2 -3,686 -3,450 -236 7%
Net (liabilities)/assets -759 319 -1078 -338%
EQUITY 0
Equity share capital 27 141 169 -28 -17%
Capital redemption reserve 27 9 11 -2 -18%
Shares held by employee share trusts 27 -11 -18 7 -39%
Other reserves 27 -2,860 -2,888 28 -1%
Unrealised gains and losses reserve 27 111 113 -2 -2%
Currency translation reserve 27 451 269 182 68%
Retained earnings 1,392 2,653 -1261 -48%
change
20
16
20
15
20
14
Before
except
ional
items
Before
except
ional
items
except
ional
items
Before
except
ional
items
Before
except
ional
items
except
ional
items
(note
5)
To
tal
(note
5)
To
tal
(note
5)
To
tal
For the year ended 31
December 2016
N
ot
e
$m $m $m $m $m $m $m $m $m
Revenue 2 1,715 -
1,7
15
1,803 -
1,8
03
1,858 -
1,8
58
Cost of sales -580 -
-
58
0
-640 -
-
64
0
-741 -
-
74
1
Administrative
expenses
-339 -13
-
35
2
-395 -25
-
42
0
-382 -101
-
48
3
Share of losses of
associates and joint
Ventures 2 -2 - -2 -3 - -3 -4 - -4
Other operating income
and expenses 9 - 9 11 880
89
1
16 130
14
6
803 -13
79
0
776 855
1,6
31
747 29
77
6
Depreciation and
amortization
2 -96 - -96 -96 - -96 -96 - -96
Impairment charges 2 - -16 -16 - -36 -36 - - -
Operating profit 2 707 -29
67
8
680 819
1,4
99
651 29
68
0
Financial income 6 6 - 6 5 - 5 3 - 3
Financial expenses 6 -93 - -93 -92 - -92 -83 - -83
Profit before tax 620 -29
59
1
593 819
1,4
12
571 29
60
0
Tax 7 -186 12
-
17
4
-180 -8
-
18
8
-179 -29
-
20
8
Profit for the year from
continuing operation
434 -17
41
7
413 811
1,2
24
392 -
39
2
There is no doubt that IHG is going through tough competition. There are more other groups like IHG in
the market. Despite the competition IHG is doing well in the context of revenue collection. But hospitality
is the field of uncertainty. The simple trend can change the overall scenario of hotel industry.
Even the change on one factors affects a lot of places. If we look a glance at the balance sheet of the IHG
then it simply defines the reason why hotel industry is known for the uncertainty. Retain earning in balance
sheet is decreased by 47.53% comparing to the physical year 2015. But it is not that the company doing.
However the retain earning of 2015 is even higher than the year 2014. Hence this may be the result of
some uncertainty that business face. Because of this uncertainty or drastic change on retain earning, the
current assets of the company get lower than the current liabilities of the company. Which ultimately effect
the liquidity ratio of the company. The operating profit in the year 2015 increased due to which the
administrative over all expenses increased in the same year. As the retain earning decreased in the year
2016 the overall expenses decreased as well. However the effect is because of the certain changes but the
company should always ready for this kind of uncertainty.
Integrated marketing communication.
Advertisement.
Intercontinental hotel group does advertisement in internet more than any other channel. Social media like
Facebook, Instagram, twitter, you tube or email are its main source for advertisement. Pop up
advertisement, advertisement in floating advertisement are often seen.
Personal selling
Personal selling in the field of hospitality and tourism has the greatest value. Because whatever service
that is sold in hotels are generate at the same place. Due to which personal selling is the key point? Hotel
also focused on their internal employee to sell their product with excellent personnel selling skills.
Sales promotion
Sales promotion of brands of IHG hotel generally used to be the package selling, discount offer to the
regular guest. Beside that they also provide different kinds of offer to their valuable guest. The offer such
as festive offer, new brand promotion offer as well as the offseason offer like winter discount offer are
generally carried out by IHG.
Social media.
Technology is the biggest invention till days. It has proved that there is nothing impossible. Technology
is the modern day product because everyone are used to it. However people pass must of the time with
this technology. Where IGH uses social media as one of the main source for the communication.
Implementation and control and contingency plan
Implementation and control
Efficient and effective implementation plan is the core factor for the positive feedback or result. The higher
or skilled manpower with knowledge, creativity and ideas are needed to get the result. Marketing is the
continuous process, the one should never have let it go types of concept.
Proper segmentation of market, team work, span of control, chain of commands, departmentalization are
the important aspect that should never be negotiate. Must of the time company are seen going out of track
while working. In order to prevent this kind mistake the team should have better coordination with blue
print or road map of the project. While going on implementation organisation should also carry out the
evaluation to see the way that the marketing planning’s is going.
Contingency plan
The business may suffer uncertainty at any time. Either it is natural or the external environment that can
probably affect the company. Here are some of the alternative plan and they are
 Should segregate extra budget, design a marketing plan and communication way, training for the
staff to be prepared for any kinds of uncertainty.
Conclusion
Hotel industries are gradually developing day by day. A lot of people with the insight of investing as well
as customers are attracted towards the tourism and hospitality business. As seen in the history of IHG it is
never back down to compete in the market. It has fascinated us with its business sense. Thus the marketing
is equally important to the organisation. If we see the marketing strategy of the IHG it clearly shows the
strategy that IHG group are implementing to get the competitive advantages. One of the main strategy of
IHG is developing the strong brand value. Which has successfully given the competitive advantage to IHG
group. Their brands are their strength. They also focus on customer loyalty. They have got the largest no.
of members all around the world. Hence their strategy is the one that is providing them the ultimate
success. The effective and efficient strategy is the key to success.
References
IHG (intercontinental hotel group), 2017. The Uncompromising Customer: addressing the paradoxes of
ageof I, s.l.: s.n.
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Available at: https://intercontinentalhotelsgroupplc.weebly.com/about-us.html
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Intercontinental hotel group, n.d. intercontinental hotel group. [Online]
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Ting, D., 2016. Skift. [Online]
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com-keeps-adding-them/

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Marketin overview of Intercontinental Hotel Group (IHG)

  • 1. BACHELOR’s (HONS) OF ARTS BUSINESS IN HOSPITALITY MANAGEMENT BUSINESS SYNOPTICS (BM3321) MARKET ANALYSIS OF IHG MODULE LEADER: BIKRAM MAHARJAN SUBMITTED BY: YUBRAJ BALAMI (00014633)
  • 2. Acknowledgement I am using this opportunity to express my gratitude to each and every one who supported me while doing this assignment. Fore and foremost I would like to thank our lecturer as well as the great thinker Mr. Bikram Maharjan important as well as valuable guidance. I am sincerely grateful to him for sharing his views as well as being available whenever I needed him. I would specially like to thank my fellow friends as well for helping me with everything that I needed. I found this activities is more important than anything. It has taught me the way to understand the subject topic. I found it as a practical way to understand and analyses the arguments and statement presented in course. I hope that I’ll get more opportunities in the future so that I can understand the topic in easy and efficient way.
  • 3. Table of Contents Executive summary ...................................................................................................................... 5 Company analysis ........................................................................................................................ 6 Introduction (the company overview) .......................................................................................... 6 Current status ........................................................................................................................... 6 Future orientation...................................................................................................................... 7 Mission statement ..................................................................................................................... 8 Vision...................................................................................................................................... 8 Situation analysis........................................................................................................................ 8 Market Overview...................................................................................................................... 8 Market trend and evolution......................................................................................................... 9 Customer/consumer behaviour:..............................................................................................10 Competitor profile: ...............................................................................................................10 Environment analysis ...............................................................................................................10 Key points to success ...............................................................................................................11 Marketing Strategy...................................................................................................................12 Segmentation/ targeting/ positioning ..........................................................................................13 Segmentation.......................................................................................................................14 Target market.......................................................................................................................14 Positioning ..........................................................................................................................14 Strategy summary ....................................................................................................................15 Competitive advantage .............................................................................................................15 Marketing mix strategy ................................................................................................................16 Product...................................................................................................................................16 Pricing....................................................................................................................................16 Place ......................................................................................................................................16
  • 4. Promotion...............................................................................................................................17 financial analysis.........................................................................................................................18 Integrated marketing communication. ............................................................................................21 Implementation and control and contingency plan........................................................................22 Conclusion .................................................................................................................................22 References ...............................................................................................................................23
  • 5. Executive summary The report is based on the comprehensive analysis of the strategy that Intercontinental hotel group has taken in the past, present and the strategy that the company needed to take in the future in order to remain in the same position that they are now. This report shows the strategic marketing plan of Intercontinental hotel group. The way that they have been doing in the previous days and the way they are doing now. And also the marketing that they can do in future. With the older references the report shows the plan for intercontinental hotel group. This report contains the short introduction of the company, company analysis, marketing plan component, situation or market analysis and competitor’s analysis. The report also shows the product and services that Intercontinental hotel group can provide in the future. It also include the mission, vision, objectives.
  • 6. Company analysis Introduction (the company overview) IHG (Inter-Continental Hotel Group), the British multinational hotel company in present scenario is one of the most dominant, superior and leading hotel group of the world. IHG stands with 5,174 hotels with 766,000 rooms stand strong with other staunch and strong competitors. IHG has never fallen down after the IHC is changed into IHG in early 20S. however the history if IHG traces back to 17th century when William Bass opens the brewery in Burton-on-Trent, UK. It was 1998 when bass started the process by acquiring the first luxury InterContinental hotel established on 1949, Bass at that time had already acquired the international hotel brand Holiday Inn hotel in Memphis in 1988 and the north America division in 1990. After that IHG started expanding various brands and continue acquiring the hotels around the globe. As a result today there are 5,174 hotels around the world under the brands of IHG. Today they have the world’s best brand under them. Holiday inn, crown plaza, intercontinental hotel & resorts, kimpton hotel, hotel indigo, even hotel, halauxe, holiday inn express, holiday inn club vacation, holiday inn resort, staybridge suit, candlewood suites, IHG reward club are under them. It operates almost in 100 country around the globe with 350,000 employee engaged on the day to day operation. The company is big so do the revenue. As per 2016 report it operate in 100 country with the revenue of $1.715 billion, $707 million operating income and net income of $417 million. As the company’s strategy is one of the core factor for the present situation of the company. Value creation, superior shareholder return, disciplined execution, doing business responsibly are said to be its main strategy. However, capturing the market by different brands are one of the major tactics that the group has taken. Analysing the environment and targeting the particular segmentation with the particular brand or developing the brand with the view of capturing the market are often seen in the case of Intercontinental Hotel Group Current status  IHG hotel group is one of the leading hotel in the world. It has 5,272 leading hotels with 785,544 rooms under 12 different brands. (Intercontinental hotel group, n.d.)
  • 7.  Return surplus funds to shareholders. In February 2017, we proposed a further $400 million return of funds to shareholders via a special dividend with share consolidation. (Intercontinental Hotel Group, n.d.)  Total Gross Revenue 2016: $24.5bn. This comprises: • Franchised hotels = total rooms revenue • Managed hotels = total hotels revenue • Owned and leased hotels = total hotels revenue (Only owned and leased hotel revenue is directly attributed to IHG.) (Intercontinental Hotel Group, n.d.)  - In the Americas and Europe, over 90 per cent of IHG hotels are franchised. In Greater China, that figure rises to more than 98 per cent. (Intercontinental Hotel Group, n.d.) Future orientation  10 Priority markets: US, Middle East, Germany, UK, Canada, Greater China, India, Russia and CIS, Mexico and Indonesia. Our priority market represent 87% of the IHG System and 89% of the IHG pipeline.  Continue expanding business all over the world by franchising, managing and Om am owned of lease basis.
  • 8. Mission statement According to the intercontinental hotel group, they have divide d their vision into 5 winning ways. And they are Do right thing Show that we care Aim higher Celebrate the difference Work better together Doing right things defines their own character. They mean to say that they will do right thing whatever they will do. Show that we care is for guest. They had also set providing customized as well as standard service as their mission. Talking about higher point I think they have already proved us the result of aiming by being one of the top hotel group of the world. IHG believes that, what makes difference is the knowledge skills and the performance of their staff. They focuses on retaining profitable staff and make them work in a team. (Intercontinental hotel group , n.d.) Vision Vision is something that defines where you want to see your company in near future. As vision is one of the most important factor, IHG have also set the vision for their companies. “Great Hotel Guest Love” is the vision of the IHG. Everything that they wanted in future is to be the great hotel with lots of love of guests. Guest love defines about the brand reputation. As they are successfully moving towards their vision. Today they have the hotels brands with the best brand reputation. They are already successful to win the heart of their guests. Situation analysis Market Overview Global hotel industry demand is driven by economic growth and an increasing trend for domestic and global travel. Over the long term, the lodging industry has grown broadly in line with Gross Domestic Product (GDP). However, in the US, the largest market in terms of number of rooms, growth in consumer spend on lodging has exceeded GDP growth by 2.6 percentage points per annum over the last 50 years. International
  • 9. tourist travel to increase from 1.2bn to 1.9bn tourist arrivals by 2026 (Intercontinental hotel group, n.d.). With the growing spending capacity of general public and there intensity of travelling the different places of the world has ultimately increased the demand of the hotel industry. As a result today tourism and hospitality industry is one of the biggest sector on business. In term of investment, in term of employment and in term of revenue generation hospitality and tourism market today is in top and trending. According to the toonz.com the estimated hotel around the world is about 187000. (tooz.com, n.d.) If the hotel around the world is 187000 then the IHG group has 5272 hotels worldwide which means it covers 2.81 percent of market share globally. However the market has got other group of hotel like Marriot, Hilton, Accor group etc. competing along with intercontinental hotel group. In 2016, InterContinental Hotels Group was the largest hotel company in the world in terms of revenue, generating around seven billion U.S. dollars more than its closest competitor, Marriott International. Among the listed global hotel groups, Choice Hotels International had the smallest revenue at just 920 million U.S. dollars. However, Choice had 6,376 hotels worldwide in 2015 – around 1,500 more than InterContinental Hotels Group. Despite being a British- owned company, the majority of the group’s revenue is generated in the Americas. The group appears to be popular in the United States, evidenced by the fact that is was given a Customer Satisfaction Index score of 78 out of 100 by Americans in 2017 (istatista , 2017). Hence the intercontinental hotel group in present context is the biggest hotel group with approximately 2.85% of market share. It is big in the context of revenue generation. However there are more other company which are doing well and is in competition. Market trend and evolution. The market trends of the hospitality does not remain unchanged. It is all about the market trends in hospitality industry because a different emotion of mood may arouse in different time. IHG research reports 4 paradox that are driving the decision that customer makes. They defines this paradox as the element to be followed if anyone wanted to be in the market. 1. The paradox of separate but connected; seeking the connection to different types of people with different brands. One of the marketing strategy that IHG has taken is the segmentation, targeting and branding. They tries to connect different people with different brand. 2. The paradox of abundant rarity; who is the best and luxury is the present trends in hotel industries. A desire for luxury to be both scarce and viability. Hence IHG establish it hotels with the world luxurious brand. 3. The paradox of seeking the better me and better we; employee are always an important part. The best employee is the root to success. However the organisation itself needed to be good and do well. Today the companies with ethics and social responsibilities possess the higher value in any organisation. 4. Do it myself and do it for me in my way; A desire to be in control while not being the controller. The 2013 IHG Trends Report highlighted Invisible Travellers… they go from home-printed boarding pass to in-flight Wi-Fi to app-ordered transportation to hotel kiosk, to app-ordered food. Many Invisible Travellers prefer the paradoxical personal yet person-less travel experience. In contrast, Gen Z appreciate the convenience benefits of the digital world. However, they also desire the experience of human contact. Although true Digital Natives, Gen Z seek person-to-person contact. (IHG (intercontinental hotel group), 2017) Hence all of these point defines the present trend as well as the solution that hotel industries should follow if they wanted to tackle with the trends.
  • 10. Customer/consumer behaviour: IHG is the established group in hospitality world. Not only established it is on the sixth rank to generate the revenue worldwide. With more than 5000 hotels from 12 different brand IHG stands among the leading hospitality group. However consumer behaviour is defined as the action that consumer shows on the certain products. Consumers are seen to be attracted towards the different brand of Intercontinental Hotel Group. Intercontinental hotel group is in top position on the contest of revenue generation. However they are in the sixth place on the market share. They even won the award for the top workplace which means their employee are more than satisfied which automatically increase the consumer satisfaction. They are the one who established the concept of luxury hotel in boarder sense. Competitor profile: Environment analysis PEST analysis Political: Stable political environment is the key factor for the success of any business organisation. Stable government of the UK has highly influenced the success of the intercontinental group. Even the group get the success mostly on USA. Where the stable government of USA has influenced the success of the organisation. Economical. Economic factors are the key for the success of any country. If the country is economically stable then only the company inside that country will do well in the market. However politics and the economic factors are to part of a same coin. The company cannot get success if the country is politically stable but instable economically, vice versa. Hence the economic condition of the United Kingdom had influenced the organisation to reach on the position that they are in today. Socio-cultural. Hotel industries are highly affected by the environment factors. If the environment is not safe or feasible for the hotel then it is like impossible to stay in the market. There are many things that hospitality need to focus on before commencing the hotel business. There are culture, tradition that are followed in that
  • 11. society. Hence even the British culture suit the business plan of the IHG and as a result it is in the top position in the hospitality industry. Technology UK is among the developed country. Development of infrastructure is most important to hotel industry. Technology is the core factors that helps to gain competitive advantages. Hence the intercontinental hotel must accept the changes on the technology with time. Only then they will able to gain the competitive advantages. However the hotel has accepted the change on technology. SWOT analysis Strength Weakness  Brand  Strong company workforce  Satisfied employee  Problem in operation due to large no of hotels. Opportunity Threat  Growing travel market  Changing trends in hospitality  Foreign currency fluctuation  Changing legal views. Key points to success Without any key factors the organisation ca never get success in the business. Even IHG has that key factor due to which it is in the present position. And they are as follow.  The Winning Model is framework for delivering superior value creation through the brands, our people and systems.  Operation of a targeted portfolio, focusing on the most attractive markets for IHG and in the highest opportunity segments, with an asset-light business model.  Through disciplined execution we prioritize investment in our technology platforms and our people, as well as delivering operational efficiencies.  A commitment to operating our business responsibly underpins our entire strategy. (Intercontinental Hotel Group, n.d.)
  • 12. Marketing Strategy Strategy are the long term plan needed for organisation to get in the way that the organisation wanted to. Marketing strategy is the long run plan that are created to figure out the marketing plan that will help organisation to obtain the goal and objective. IHG has been adopting the marketing through new technologies. Advertisement through the mobile apps and the websites are one of their key strategy of marketing. IHG is Focusing different customer and developing the brand for them. They have been seen adopting the differentiate strategy with the view of attracting the different kind of customer.
  • 13. Segmentation/ targeting/ positioning IHG segments Market segments The Group’s brand Description Customer segment Luxury - Hotel with the highest level of amenities, often boutiques or small chains with top-class facilities and services and very high room rates A mix of business and leisure, dependent on location, often with a high proportion of international guests Upper upscale InterContinental Well-appointed hotels with full, high-quality, amenities including spacious rooms and bathrooms. High room rates. Usually located in major cities or in resorts. Predominantly business often with a high proportion of international guests. Upscale Crown plaza Stalybridge suites Hotel indigo Full service but with fewer amenities than upscale. Comparatively lower room rates than upscale Predominantly domestic guests, both business and leisure. Midscale (full scale) Holiday Inn Holiday Inn select Holiday Inn spree Full service but with Fewer amenities than upscale. Comparatively lower room rates than upscale Predominantly domestic guests, both business and leisure.
  • 14. Midscale(limited service) Holiday inn express Candlewood suites Reduce fob, bar, and meeting facilities. Predominantly domestic guests, both business and leisure. Economy/budget - Cheapest most basic hotels with limited facilities Predominantly domestic guests. Above table defines the market segmentation on the basis of people’s choice, targeted market by IHG and their brand to target that markets. Segmentation Market segmentation is segregating the market on various basis. Basically the market of hotel is segmented in the basis of the people’s capacity. Generally the market of the hotel is segregated on 5 basic class. The types of market segmented for hotel are, luxury, upper upscale, upscale, mid-scale, economy/budgeted. These kind of hotel can be found in the market. Target market Targeted market by IHG group are generally the people with ability to pay to their luxury hotels. Their almost all brand are luxury based brands gives great experience of luxury. They targeted upper upscale class people with intercontinental hotel, upscale with crown plaza, hotel indigo and stay bridge. Mid-scale with holiday inn, holiday inn select, holiday inn spree. It also focused on the people of mid-scale with its brand holiday inn express and candlewood suites. Therefore, holiday inn targets 4 different market with its brand. Positioning IHG group is one of those few hotel to start the luxury hotels in the world. Even today the brand never compromises in the quality of their product. Whenever the brand of IHG comes in the mind of the guest they think about the luxurious hotel in reasonable price. However they doesn’t target the luxury market segment but gives the luxury amenities to make them feel that they are the valuable customer. Hence the positioning of the intercontinental hotel group in today’s scenario is the hotel with luxury amenities and services.
  • 15. Strategy summary Branding and positioning is the most important aspect to any company either it is hotel of any other type. Branding and positioning gives identification to the company. Thus IHG focus on the branding and positioning to their hotel. They successfully established their brand to prove as one of the best brand in the world. Hence the branding of the marketing strategy is one of the focused strategy to them. As the company focuses on the branding, they are also focused on the differentiation. They come up with the new ideas as well as model to attract their customer portfolio. As branding helps to give the identity to the product, differentiation help to established different brands. As IHG had successfully done. They segment the market and target them with their unique product which is also known as differentiation. Competitive advantage IHG has never backed down to surprise us with its great sense of competition. IHG today is one of the leading organisation with no doubt. The way it sees or treats the guest is just unbelievable. To give that satisfaction human resource is the key factors. From it we can say that they have got the best human resources. Everyone is doing hotel business but IHG is doing it in different way. That is why IHG group reached the sky in short period of time. Biggest hotel loyalty program; As Sift pointed out in May, IHG has 92 million members worldwide, whereas Marriott has 54 million and Hilton has about 51 million. That’s a lot of loyalty program members. Given the fact that all the big brands, IHG included, are launching major direct booking pushes aimed at building up their loyalty numbers, this number is significant. (Ting, 2016). IHG has the biggest no. of member worldwide which is more than their rivals. It holds the biggest loyalty program due to which it if growing more and more. Owns the world largest hotel brand. IHG own the world largest hotel brand holiday inn 3,651 properties around the world due to which it is well known among the most people in the world. Own the hotel with big brand value. IHG owns 12 different hotel brand with the greatest brand value. As the brands are known worldwide, they have the biggest brand value. Holiday inn, crown plaza, intercontinental hotel etc. are known worldwide. Because of its popularity the value of brand has increased as well. Biggest no of hotels coming next
  • 16. IHG already own more than 5000 hotels in the world with more than 700,000 rooms worldwide. However they are increasing it in aggressive way. They had already signed on 35000 rooms to be added under the brand of intercontinental hotel group where 45 percent is already under construction. Staff satisfaction Employee are the main component of the hotel industries. Perfect workforce motivation leads to the ultimate profit as well as good public relation helps organization in many ways. Marketing mix strategy In very short span of time IHG became one of the leading multinational hotel group. British company was officially formed in 2003 which became leading company in only 15 years of time periods. It is said that time doesn’t matter. What really matters is the strategy and the implementation. Let’s see the marketing mix strategy of Intercontinental hotel group. Product IHG is the holdings company which means it does not directly produce the product and directly contact with the customer. It creates the brand and bring it to the market. IHG is acquires the multinational hotel brand and expanding its worldwide. However it generates its revenue by selling the right by franchising and managing the hotel along with owning the hotel worldwide. Pricing IHG developed the brand with the view to connect every types of people around the globe. It basically divide the market into the segments of the standard of living of guest i.e. high scale, luxury or midscale and keep price accordingly. Pricing strategy of the IHG group depend upon the brand that it is targeting with. Place IHG has its properties around 100 country worldwide.it has majority of its properties in south America with more than 3,781propeties and that continues with 642 hotels in Europe and followed by Asia with498 hotels, north America 40 Australia 35 and Africa 23. Which shows that must of their properties are in developed area. As they are the group known for the luxury hotel, the city centre or down town is the main location for them
  • 17. Promotion Hotel mostly lies on the word of mouth. The good word of mouth is always a plus poet for any organisation. And the word of mouth seems quite effective as there are many other competitors competing with intercontinental hotel group. Technology in today is the ultimate advantages if they are used in efficient way. After the word of mouth company also believe on word of mouse. It is the fastest way to reach among people. However it has sponsored the travel agents and does the promotion through them to get to customers.
  • 18. Financial analysis comparative Group statement of financial position 31st dec 2016 2015 Note $m $m ammount percentage ASSETS Property, plant and equipment 12 419 428 -9 -2% Goodw ill and other intangible assets 13 1,292 1,226 66 5.4% Investment in associates and joint ventures 14 111 136 -25 -18% Trade and other receivables 16 8 3 5 167% Other financial assets 15 248 284 -36 -13% Non-current tax receivable 23 37 -14 -38% Deferred tax assets 7 48 49 -1 -2% Total non-current assets 2,149 2,163 -14 1% Inventories 3 3 0 0% Trade and other receivables 16 472 462 10 2% Current tax receivable 77 4 73 1825% Other financial assets 15 20 0 20 Cash and cash equivalents 17 206 1,137 -931 -82% Total current assets 778 1,606 -828 -52% Total assets 2 2,927 3,769 -842 -0.22 LIABILITIES 0 Loans and other borrow ings 20 -106 -427 321 -75% Derivative financial instruments -3 -3 0 0% Loyalty programme liability 32 -291 -223 -68 30% Trade and other payables 18 -681 -616 -65 11% Provisions 19 -3 -15 12 -80% Current tax payable -50 -85 35 -41% Total current liabilities -1,134 -1,369 235 -0.17 Loans and other borrow ings 20 -1,606 -1,239 -367 30% Retirement benefit obligations 25 -96 -129 33 -26% Loyalty programme liability 32 -394 -426 32 -8% Trade and other payables 18 -200 -152 -48 32% Provisions 19 -5 -5 Deferred tax liabilities 7 -251 -135 -116 86% Total non-current liabilities -2,552 -2,081 -471 23% Total liabilities 2 -3,686 -3,450 -236 7% Net (liabilities)/assets -759 319 -1078 -338% EQUITY 0 Equity share capital 27 141 169 -28 -17% Capital redemption reserve 27 9 11 -2 -18% Shares held by employee share trusts 27 -11 -18 7 -39% Other reserves 27 -2,860 -2,888 28 -1% Unrealised gains and losses reserve 27 111 113 -2 -2% Currency translation reserve 27 451 269 182 68% Retained earnings 1,392 2,653 -1261 -48% change
  • 19. 20 16 20 15 20 14 Before except ional items Before except ional items except ional items Before except ional items Before except ional items except ional items (note 5) To tal (note 5) To tal (note 5) To tal For the year ended 31 December 2016 N ot e $m $m $m $m $m $m $m $m $m Revenue 2 1,715 - 1,7 15 1,803 - 1,8 03 1,858 - 1,8 58 Cost of sales -580 - - 58 0 -640 - - 64 0 -741 - - 74 1 Administrative expenses -339 -13 - 35 2 -395 -25 - 42 0 -382 -101 - 48 3 Share of losses of associates and joint Ventures 2 -2 - -2 -3 - -3 -4 - -4 Other operating income and expenses 9 - 9 11 880 89 1 16 130 14 6 803 -13 79 0 776 855 1,6 31 747 29 77 6 Depreciation and amortization 2 -96 - -96 -96 - -96 -96 - -96 Impairment charges 2 - -16 -16 - -36 -36 - - - Operating profit 2 707 -29 67 8 680 819 1,4 99 651 29 68 0 Financial income 6 6 - 6 5 - 5 3 - 3 Financial expenses 6 -93 - -93 -92 - -92 -83 - -83 Profit before tax 620 -29 59 1 593 819 1,4 12 571 29 60 0 Tax 7 -186 12 - 17 4 -180 -8 - 18 8 -179 -29 - 20 8 Profit for the year from continuing operation 434 -17 41 7 413 811 1,2 24 392 - 39 2 There is no doubt that IHG is going through tough competition. There are more other groups like IHG in the market. Despite the competition IHG is doing well in the context of revenue collection. But hospitality is the field of uncertainty. The simple trend can change the overall scenario of hotel industry.
  • 20. Even the change on one factors affects a lot of places. If we look a glance at the balance sheet of the IHG then it simply defines the reason why hotel industry is known for the uncertainty. Retain earning in balance sheet is decreased by 47.53% comparing to the physical year 2015. But it is not that the company doing. However the retain earning of 2015 is even higher than the year 2014. Hence this may be the result of some uncertainty that business face. Because of this uncertainty or drastic change on retain earning, the current assets of the company get lower than the current liabilities of the company. Which ultimately effect the liquidity ratio of the company. The operating profit in the year 2015 increased due to which the administrative over all expenses increased in the same year. As the retain earning decreased in the year 2016 the overall expenses decreased as well. However the effect is because of the certain changes but the company should always ready for this kind of uncertainty.
  • 21. Integrated marketing communication. Advertisement. Intercontinental hotel group does advertisement in internet more than any other channel. Social media like Facebook, Instagram, twitter, you tube or email are its main source for advertisement. Pop up advertisement, advertisement in floating advertisement are often seen. Personal selling Personal selling in the field of hospitality and tourism has the greatest value. Because whatever service that is sold in hotels are generate at the same place. Due to which personal selling is the key point? Hotel also focused on their internal employee to sell their product with excellent personnel selling skills. Sales promotion Sales promotion of brands of IHG hotel generally used to be the package selling, discount offer to the regular guest. Beside that they also provide different kinds of offer to their valuable guest. The offer such as festive offer, new brand promotion offer as well as the offseason offer like winter discount offer are generally carried out by IHG. Social media. Technology is the biggest invention till days. It has proved that there is nothing impossible. Technology is the modern day product because everyone are used to it. However people pass must of the time with this technology. Where IGH uses social media as one of the main source for the communication.
  • 22. Implementation and control and contingency plan Implementation and control Efficient and effective implementation plan is the core factor for the positive feedback or result. The higher or skilled manpower with knowledge, creativity and ideas are needed to get the result. Marketing is the continuous process, the one should never have let it go types of concept. Proper segmentation of market, team work, span of control, chain of commands, departmentalization are the important aspect that should never be negotiate. Must of the time company are seen going out of track while working. In order to prevent this kind mistake the team should have better coordination with blue print or road map of the project. While going on implementation organisation should also carry out the evaluation to see the way that the marketing planning’s is going. Contingency plan The business may suffer uncertainty at any time. Either it is natural or the external environment that can probably affect the company. Here are some of the alternative plan and they are  Should segregate extra budget, design a marketing plan and communication way, training for the staff to be prepared for any kinds of uncertainty. Conclusion Hotel industries are gradually developing day by day. A lot of people with the insight of investing as well as customers are attracted towards the tourism and hospitality business. As seen in the history of IHG it is never back down to compete in the market. It has fascinated us with its business sense. Thus the marketing is equally important to the organisation. If we see the marketing strategy of the IHG it clearly shows the strategy that IHG group are implementing to get the competitive advantages. One of the main strategy of IHG is developing the strong brand value. Which has successfully given the competitive advantage to IHG group. Their brands are their strength. They also focus on customer loyalty. They have got the largest no. of members all around the world. Hence their strategy is the one that is providing them the ultimate success. The effective and efficient strategy is the key to success.
  • 23. References IHG (intercontinental hotel group), 2017. The Uncompromising Customer: addressing the paradoxes of ageof I, s.l.: s.n. Intercontinental hotel group , n.d. IHG (Intercontinental Hotel Group). [Online] Available at: https://intercontinentalhotelsgroupplc.weebly.com/about-us.html Intercontinental Hotel Group, n.d. Annual Report and form 20-F 2016, s.l.: s.n. Intercontinental hotel group, n.d. intercontinental hotel group. [Online] Available at: https://www.ihgplc.com/investors/shareholder-centre/annual-reports-and-responsible- business-reports istatista , 2017. istatista. [Online] Available at: https://www.statista.com/statistics/273064/revenue-of-the-largest-hotel-groups-worldwide/ Ting, D., 2016. Skift. [Online] Available at: https://skift.com/2016/08/11/5-reasons-why-intercontinental-hotels-group-is-ripe-for-an- acquisition/ [Accessed 2017]. tooz.com, n.d. toonz. [Online] Available at: https://www.tnooz.com/article/how-many-hotels-in-the-world-are-there-anyway-booking- com-keeps-adding-them/