Analysis and Recommendations for Red Carnation Hotels' International Expansion

This report analyzes the global hotels industry, Red Carnation Hotels' internal business environment, and potential target markets of China, France, Nigeria, and Thailand. It recommends one target market, a suitable mode of entry, and an appropriate marketing mix for Red Carnation Hotels to succeed in the selected target market.

Assignment Questions
Background Instructions:
• All learning outcomes will be assessed. This summative assessment represents 50% of total
module marks.
• Carefully read the case study given below and the assignment questions before answering
the questions. You need to undertake additional environmental and academic research beyond this
case study.
• The report should be submitted on the Student Portal along with a Turnitin Report
A Case of Red Carnation Hotels [i]
Hospitality is what makes Red Carnation tick. A family-owned and run business, it offers luxury,
award-winning boutique hotels across the UK and the Channel Islands, Ireland, South Africa,
Switzerland and the USA, and a country gastro-pub in Dorset. The Hotels started in South Africa in
1950s and then entered UK in 1975.
Red Carnation’s mantra is: to provide guests with the best possible hospitality and most memorable
experiences. The company aims to provide outstanding service at its 23 locations, operating on a
philosophy of ‘no request too large, no detail too small.’ To help its 2,500 employees deliver this
level of service, Red Carnation relies heavily upon its IT infrastructures.
The true heart of any luxury hotel is its staff and the service they give to guests. They have won
award for Excellence in Recruitment and Retention at the HR in Hospitality awards, Accepting the
award, Liz McGivern, Vice President of HR at Red Carnation, said: “Finding great people and holding
onto them isn’t easy, so how brilliant to have this endorsement.”
International Marketing and expansion:
The Red Carnation Hotel Collection consists of Seventeen luxury boutique hotels and spas in
spectacular locations in the UK and the Channel Islands, Ireland, South Africa, Switzerland and the
USA. The hotel chain is exploring opportunities for international expansion.
Luxury, Hospitality, Hotels, Five Star, Service are key things to serve guests. “No request too large, no
detail too small” are the words the hotel live by and the standards we set ourselves.
In addition, the company hires best elopes and train them to provide best customer experiences.
The employees are their key strengths, the employees offers attentive, personalised service, fine
food, the ready smiles, and attention to detail of each customer needs of diverse international
customers.
Red Carnation has been in the top 10 on The Sunday Times 100 Best Companies to Work For list for
the last three years. Also it has consistently received top rating on TripAdvisor.
They have best designed rooms and hotels. Red Carnation bedrooms are, indeed, highly memorable,
each with its own design, often inspired by the Bee Tollmans’ ( founder of the company)
extensive travels. Rich colours abound and the use of matching highly patterned fabrics for heavy

window drapes, bed covers and even wall coverings are a signature feature. Many of the rooms are
heavily themed, sumptuous and highly theatrical.
The company promotes many travel destinations as a strategy to attract people to their hotels. In
their blogs, one can find mention of best places to visit. This may be a way to bring in traffic through
search engines and then convert those potential customers into your own.
The company also follows strategy of social and environmental responsibility, in collaboration with
their own not-for-profit Treadright foundation. They have taken responsible of Bushmans Kloof
Wilderness reserve – A UNESCO world heritage cape floral kingdom, in South Africa . Other the
charities they support in England include the starlight foundation, great Ormond street children's
hospital, action against hunger, the national autistic society. in Geneva, they provide help for the red
cross.
Future Vision and aims:
Looking to the future, is there room for expansion? “We’re always looking for new opportunities,
“They could be in the UK or they could be overseas. says Bea Tollman,83 year older the founder of
the groups. The hotel chain is exploring opportunities for international expansion.
Expansion into international markets is crucial for Red Carnation Hotels, However, the questions are
how and where? The company is exploring its options to expand into ONE of four major markets,
namely China, France, Nigeria and Thailand.
sources used :
[i] http://londonhotelsinsight.com/2012/11/20/how-red-carnation-hires-and-retains-great-staff/
https://www.redcarnationhotels.com/about/the-rch-story.
http://appointments.thesundaytimes.co.uk/article/best100companies/
Consultancy Brief:

Hired as an international marketing consultant, you have been asked by Red Carnation Hotels to
carry out a thorough analysis of the market and recommend one international market for the hotel
group to enter in the year 2019.
You should analyse the global market, recommend a target market/country, decide a suitable mode
of entry and develop an appropriate international marketing strategy.
You should prepare a report for the board of directors addressing your
consultancy brief, the report should answer the following questions.
Assignment Questions:
Quetion1: Analyse the macro and competitive factors that impact global hotels industry. [LO1, LO2]
Question 2: Analyse the internal business environment of Red Carnation Hotels, using Porter’s
Value Chain. Note: questions 1 and 2 require you to research and analyse:
• Global macro hotels industry
• Global competitive factors – hotels industry
• Internal business environment of Red Carnation Hotels,
• SWOT of Red Carnation Hotels
Question 3: Critically evaluate the potential target markets of China, France, Nigeria and Thailand.
and then select ONE of the target markets, using 12 Cs framework of screening and justification.
Note: Question 3 requires you to critically evaluate the market attractiveness of the 4
potential markets (namely China, France, Nigeria and Thailand), using 12Cs framework,
compare the market attractiveness and decide ONE country / market to target.
Question 4. Recommend to Red Carnation Hotels an appropriate mode of entering your chosen
country and justify your choice.
Question 5: Critically analyse your targeted country’s socio-cultural factors and develop an
appropriate marketing mix for Red Carnation Hotels to succeed in your selected target market. You
must link your proposed marketing mix to the company’s SWOT and cultural factors and justify your
answer

Your main report should have well developed arguments, which should be properly underpinned
with theory and facts along with critical analysis, synthesis, evaluation and suitable
recommendations. The purpose of appendices is to support the report. Your grade is highly
dependent on the contents of your main report.
Additional analysis should be developed and placed in the appendix of your report, with summaries
of analysis in the main body of the report cross-referencing to the appendix.
Additional information will be available on the portal to support your research but you will need to
conduct your own research into macro and micro factors using the online library.
Please see below for grading criteria. Marks will be distributed as indicated in the assessment
criteria.
End of Assignment Brief