Market analysis for Whitbread PLC

The largest oldest hotel and restaurant company in the United Kingdom is Whitbread PLC. Whitbread was established as a brewery in 1742 by Samuel Whitbread (Whitbread, 2007-09). This corporation operates “market-leading businesses in the budget hotels and restaurant sectors” (Whitbread, 2008). The brands that are associated with this company are Premier Inn, Beefeater, Table Table, Brewers Fayre, Taybarns and Costa Coffee.(Whitbread d, 2009)

Whitbread PLC has many factors which affect the industry. Through the Political, Economical, Social and Technological (PEST) analysis I will identify those factors that are external environmental influences. In the political part, factors that may affect the way that the company operates are the taxes that the government might raise the employment laws, the environmental regulations, the trade and tariff restriction as a result of a protectionism and also the government instability or change. In the economic section, what might affect Whitbread’s cost of capital is the financial crisis that takes place worldwide in this time but also the economic growth, the exchange rates and the inflation rates. In the social section, customer needs and size of potential markets might be influenced by population growth rate, age distribution, career attitudes and health consciousness. And last but not least, in the technological section can decrease minimum production rates and outsourcing decision through Research and Development action, technology incentives and rate of technological changes. (QuickMBA)

On the other hand, the environmental factors that are internal to the industry are categorized as Strengths and Weaknesses, and Opportunities and Threats are categorized as external to the industry, and this is referred as SWOT analysis. The strengths of Whitbread are the following. First of all, in the environmental issues, the company has improved the management of the level of waste water, it also has purchased a proportion of renewable energy in order to fight the climate change and upgrade fulfillment in the waste contact, offer recycling units within the company and search for other packaging choices as the approach of the corporation is to help the environment. (Whitbread c, 2009) In addition, they try to have the best reputation among customers by ensuring that all of their brands are the chiefs in the area of customer service. Furthermore, they endeavor to be financially strong by supervising their business so the stakeholder value exists in all their activities. They also are great leaderships and are succeeded by increasing their profitability and market share of their brands and by becoming the employer of choice in UK hotels and restaurants. Good reputation is a well-known strength of the company as it is the largest and oldest hotel and restaurant company in Britain. (Whitbread f, 2009) The last strength of this corporation is the loyal workforce as they hire people who are friendly, passionate and willing to help and they employ the finest people for the hospitality industry. (Gregory, 2000) (Whitbread e, 2009) The weaknesses ethat Whitbread faces are the following: they have high cost structure as they own so many brands. In addition, the poor quality of goods and services that they may offer, such as the coffee at Costa Cafe, might not satisfy the customers and so the clientele will fall. They also are a single market, that means that their brands are only in UK, and that is a serious weakness. Because of the high-quality and huge in number workforce, there might be an internal lack of communication skills. Last of all, the company’s financial and resources can worsen because of the other weaknesses. One of the most important opportunities is that they are able to develop the market and make an international market but also to slackening regulations. In addition, they are capable of make mergers and to remove the international trade barriers. And last but not least, the threats that the company may face are a new competitor in their own market with a substitute product in a lower price, a new taxation on products and services, shift in consumer choices and new regulations. (12Manage, 2009)

Whitbread’s vision is “to create leisure and hospitality that make people better every time they visit us”. (Whitbread a,2009) The objectives that I would set as a pr practitioner in order to improve the company in all it’s sectors will be: To expand their company and give value to the stakeholders by developing the capital employed in their industry.

To operate in markets which have high-growth potential.

To be the leading company in this sector.

To achieve the leading status through organic growth.

To create new brands, new markets and new acquisitions.

To improve image and reputation.

To increase financial growth

To expand the company worldwide.

To improve the advertising, marketing and PR areas.

To achieve business and financial success.

In order to achieve a successful PR campaign, you have to identify the right publics and stakeholders, to prioritize and more importantly to target the right audience. Considering the previous information the public that should be targeted will be the following:

General public

Customers

Government

Stakeholders

Competitors

Suppliers

Media

Employees

With the aim of this campaign to be triumphant, it will need some strategies. These strategies will be:

Segmentation analysis: This analysis will help identify the customer’s psychology and the competitor’s overview as well as to recognize in which sectors they have to make their best.

Price Analysis: This strategy will help to determine the demand depending on the price and make an analysis on cost, demand and profit relationships in order to broaden their knowledge and make better offers in order to attract more consumers.

Sales promotion: This is a usual way to promote the products as it gives the opportunity to make offers such as “If you rent a double room for one week, we will offer you a free driver” and customers try to make their advantage.

Sales analysis: This analysis will help the company identify the forecast, the competitor’s and the industry’s sales in order to find ways to promote the industry.

Tactics play an important role in the campaign as is what ways will be used to achieve the objectives. The tactics that will be used are:

Media Relations: Their effect is cumulative and long term but also is the most effective way in creative awareness and agenda setting. Media relations are the most efficient way for responsiveness.

Sponsorship: This is a way of promotion and also creating awareness in many markets. It improves image and reputation of the industry and also it reinforces positive attributes of the current event/organization.

Special events: This will help the industry to be promoted and will create awareness in the targeted publics but also will help the industry’s image and reputation.

Advertising campaigns: This is a chief strategy as most customers are fascinated by them and it is the best way to attract the audience.

Customer relations: This is a way on communicating with the public’s in ways as direct mail, advertising, internet, exhibitions and newsletters.

Financial relations: This will help internally the industry to review its financial records by annual reports, hospitality, internet and extranet.

Timescale

Activity

Autumn

Winter

Spring

Summer

Setting Objectives

First thing to do

Review objectives

Achievements

Evaluation

Target public

Target right public

Public intrested

Public motivated

Evaluation

Deliver messages

Create messages

Overview messages

Promote&deliver messages

Evaluation

Segmentation Analysis

Make analysis

Overview analysis

Observe changes

Evaluation

Price Analysis

Make Analysis

Overview analysis

Make changes

Evaluation

Sales Promotion

Make analysis

Make offers

Observe changes

Evaluation

Sales Analysis

Make analysis

Overview sales

Observe changes

Evaluation

Media Relations

Create stronger relations

Make conferences

Invest relations

Evaluation

Sponsorship

Make research

Find opportunities

Make contracts

Evaluation

Special Events

Research on variables

Organize events

Events take place

Evaluation

Advertising

Research on adverising methods

Make contracts

Evaluation

Customer Relations

Overview of relations

Inform

Make innovations

Evaluation

Financial Relations

Analysis of financial

Make imrovements

Overview of financial

Evaluation

Resources

Resources play a very important role in the campaign as it is a plan of budgeting. It is divided into Human Resources, Operating Costs and Equipment. The following diagram will show the resources:

Human Resources

Operating Costs

Equipment

Staff Salaries

Print and Production

Restaurant furniture

Employment Costs

Media Relations

Cooking equipment

Overheads and expenses

Operating expenses

Computer equipment

Workforce planning

Taxes/Income Taxes

Food supplies

Skills management

License fees

Beverage and Bar supplies

Training and Development

Rent/Lease payments

Warewashing

Insurance

Sanitation and Mantenaince

Restaurants supplies

Kitchenware

Raw materials

Refrigeration

In order to be critical and reflective and be able to recognize what could have been done better, an evaluation process will be very useful.

Objectives

All the objectives were achieved.

Public

Not all the public were aware.

Messages

The message had efficiently delivered.

Human Resources

There were some problems with HR.

Operating costs

The operating costs were bigger than expected

Sales Promotion

Sales promotion helped for the promotion of products.

Sales Analysis

Sales analysis helped to improve the sales.

Media Relations

Media relations played an important role.

Sponsorship

Sponsorship helped broaden image and reputation.

Special Events

Events made the public more aware.

Advertising

Best way of promotion-Right channels

Customer Relations

Customer relations improved.

Financial Relations

Financial had some problems

Budgeting

Good budget

Equipment

Well equipped

Overview

The PR Campaign made for the Whitbread Company was really efficient. The objectives were achievable and real-life. All of the targeted public groups were aware of the campaign. The strategies used were really enthusiastic as the analysis made was useful for the improvement and expansion of the company. In addition, tactics helped to promote the campaign in areas such as media relations, events and sponsorship. As far as timescale is concerned, everything was scheduled on time and resources were well-structured and nothing was forgotten. At last but not least, in the evaluation process it showed what could have been better.

New Coffee World In Central London

In this part of the assignment, my aim is to launch a new coffee world in Central London through a PR campaign using some communication theory models. The theories that I will use for this campaign are: Network Theory and Linear Communication model.

Network Theory

The network theory is a very important method of communication because it enables the planner to predict how information will move around a network, target those with wider networks, provides sophisticated channels to spread communications and it is also possible to change attitudes with the network becoming a change agent. The way that it works is the following: Source-Message-Channel-Receiver. There are three basic types of network which are: Communication network, Exchange network and normative network and analysis of networks is always important as commutation may result in bad. (Windhal et al, 2006) In this case, the aim of the planner is to launch but mainly promote the new coffee world. The first model for the launching is the model of convergence which will operate by the help of psychological and physical reality. The audience will interpret and perceive the information, that is the new coffee world, and then they will understand and believe by the actions the social reality and mutual understanding will take place. By this way, the public will be aware of the launch but also will spread the word out. Connectedness, diversify; integration and openness play a very important role in this process. The planner will make information of the new place transmittable as the messages play a very important role. Data can be gathered by a communication journal, surveys and messages.(Windhal et al, 2006) The network theory can be applied in this situation through internet advertising, e-mail and direct mail, newsletters, magazines, newspapers and commercials. Communication has four different functions which are: expressive function, social function, information function and control activation function which each of them describes identity, community, knowledge and action. A combination of all these is used in order the communication process to be more efficient.

The Linear model of Communication

The linear model of communication is “a one-way process in which one person acts on another person. It is a transmission model because it assumes that communication is transmitted in a straightforward manner from sender to receiver.” (Wikianswers.com) This way of communication will help to launch and promote the new coffee world. Below there is the linear model:

Shannon-Weaver+Model.gif

(The Shannon-Weaver Mathematical Model 1949)

As it is shown, the process is: source-message-channel-receiver-feedback-noise. This is the usual and classical model that the process of the message goes. The planner of the campaign will use effectively this method in order to promote the new coffee world. Communication is about being effective. By one way process, the transmission and interpretation of the message and empathy, social perspective, relationship and situational knowledge is gained about the receiver and transmitter. The audience by this way will be targeted and sensitivity to feeling and thoughts of others will be recognized. Space, social environment, cultural context and public opinion are some qualities being perceived from this process. Through the linear model, receivers get information and the transmitter chooses how and when to distribute them as well as stores and retrieves information for the receiver in a passive approach where offers to them personal assistance, where relates to distribution in strategy and mass communication.

CSR Environmental Proposal for Whitbread

Whitbread is the biggest hotel and restaurant industry in UK as previously said. The industry is devoted in taking its corporate responsibilities seriously. They have a well-build reputation as they take a reasonable approach to the method they encounter their expectation of their stakeholders. They really value on their good relationships with their stakeholders as the industry’s continual expansion and development from their triumphant partnerships. (Whitbread, 2009) The environmental proposal that I would make for Whitbread restaurant sector would be to use machinery and equipment that are friendly to the environment. This will be analyzed by the systems theory and two-step theory.

Two Step Theories

Multi-step theory “is a method by which messages pass through mass media and interpersonal channels from source to receiver”.(Mindahl et al, p.51) In this method, the information attain the public by opinion leaders. Two step model combines interpersonal and mass communication and it assumes that more than one channel is needed in order to effect successful communications and also that both steps are needed. In the two-step flow process, mass media influence society’s opinion leaders who in turn influence the opinions and actions of the society and also people are influenced by people. The first stage is transfer of information and the second transfer of influence. (Windahl et al, 2009)This way of communication will help to launch and promote the environmental initiative for CSR as it is a very efficient way because of the mass media involved but also and society’s opinion mainly influence. So the environmental and social aspect of the company will be improved.

Systems Theory

In this campaign, system theory will work as an open social system where there are permeable boundaries and interaction with the environment. The concepts of systems theory that will help this project are: Feedback which is influenced and in turn influence the environment, Balance which transform inputs to outputs and Input which needs energy, people and material to maintain them. Communication occurs at two levels, in what is said and how it is interpreted. There are five subsystems: Production, Disposal, Maintenance and Adaptive. In general, social and environmental context of PR means can only be about corporate interests and this will help the campaign to be effective in the environment.