This report provides insights on global marketing systems and the factors to consider for expanding business in a new country. It discusses the brand, country profile, and external factors such as social, technological, and environmental factors. The report focuses on Apex hotels' plan to expand in Spain.
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GLOBAL MARKETING REPORT 1
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EXECUTIVE SUMMARY The report here is based on the aspects of global marketing systems that emphasises on the multiple dimensions of the business and performing the business in a respective nation. Along with that the important elements of external factors and business aspects are discussed in the report. The project is thus formed with the due consideration of all the essentialelements company, brand, respective country and so on that are needed to be expand the business in other nation. 2
TABLE OF CONTENTS EXECUTIVE SUMMARY.............................................................................................................2 INTRODUCTION...........................................................................................................................4 The Brand...............................................................................................................................4 1.3 Globalisation, Anti-Globalisation and Brexit...................................................................5 1.4 Country Profile.................................................................................................................5 1.5 Audit.................................................................................................................................6 CONCLUSION................................................................................................................................9 REFRENCES.................................................................................................................................10 3
INTRODUCTION The ultimate goal of any organisation is to encourage its workings and operations to expand its business in the global channels of market. The effective planning is the first and foremost step in steeping in to a new or different country (Czinkota and Ronkainen, 2013). This is the main purpose behind the report to evaluate and analyse all the important factors of global marketing for the efficiency in formulating the planning of new expansion. This report is based on Apex hotels, which is a well renowned hotel brand within UK. The hotel is currently taking steps to expand the hotel units in Spain. In regards to this the report here is analysed comprising of the main attributes of the brand, the country where the business is currently taking place. The discussion of the external environmental factors of Spain is also given. All the opportunities and threats will be evaluated in this project in respect of establishing the existing business in a very different and dynamic market. The Brand A brand is considered as the value or a tool with that a company is recognised in the market. Currently the company is a leading hotel among the major organisation within the hospitality industry. The hotel has a well renowned position within the 4 star accommodation and hospitality units. The organisation is currently operating the business and providing the services within United Kingdom. A distinctive strategy to target their most appropriate customer segment is stipulated. The segmentation is attained through the demographic classification while the targeting of the preferred segment of the brand is done through implementing the behavioural targeting pattern. The company has an upcoming goal to expand its business in Spain. Thus the marketing mix of Apex hotel will certainly help in determining the plan of the action to attain its goals and objectives. The marketing mix of Apex hotel is derived from the current operation and performance of the entity in UK. This is as follows :- ProductPlace The company offers the common products and services range within the hospitality sector. A limitednumberofcuisine,fooddishes, accommodation service, inclusive of renting Organisationhasamultiplebranchesin England UK and each of them have some distinctive feature and speciality. This enables them to the direct interaction of the consumer 4
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the room and suiteswith each hotel segment (Hoppner and Griffith, 2015). PricePromotion The pricing factor is determined by considering the cost incurrence and competitive rates of the other rivals. Apex Hotels uses a common yet effective tool for the promotion. The company adapts the techniques of promotion including billboards, big sign boards, social media and on other platforms of digital media. 1.3 Globalisation, Anti-Globalisation and Brexit The globalisation is referred to as the term of operation the business in more than 1 country. Globalisation helps an organisation to expand its business to the global level and enhance the standards of workings as well as to attain the goals and objectives in terms of higher profitability. While the process of restricting the companies to expand their venture in different countries due to various reasons is termed as the anti globalisation. In recent years there is a lot of change and transformation that took place in European and UK based industrial markets due to Brexit criterion (Christodoulides,Cadogan and Veloutsou, 2015). The exit of UK and its states from the European Union has influenced the working classes and big industries in respect of restricting their work and operations and limiting the criteria of extensive business performance throughout multiple boundaries of the nation. 1.4 Country Profile Apex hotels have a long chain of hotels throughout the United Kingdom. These hotels are very well situated in London, Bath, Edinburgh, Glasgow and Dundee. The hotel industry is currently planning to operate in Spain, precisely in Catalonia. The city is flourished with effective opportunities for the hospitality industries. The population of Spain is about 46.75 million that caters to the beliefs and cultures on the different aspects (Rosson and Ford, 2016). The respective hotel will segment the desired audience on the demographic criteria. The demographic portfolio of the country will involve elite classes, classification on the basis of nationality and earning standards of the people. This will help Apex hotel on to gain the attention of respective ad most effective shares of the market. Being a hotel it will face a lot of competition from other existing rivals. The principle industries in Spain and Catalonia are travel and tourism that shares about 11% of the GDP, other major 5
industries are agriculture, food and exports & imports. The market size within Spain is wide and the volume of trade and business that takes place at a usual course of time determines the size. Thus the size of the market is large and developing in nature. 1.5 Audit The factors of the PESTLE analysis help a business to evaluate all the aspects of the external environment. These elements are certainly responsible in the survival and growth of the organization in the different environment of a particular region. Here the analysis is performed on the base of social, technological and environmental factors within the confines of Spain. This will help in determining the plan of expanding the business of Apex Hotels UK in Spain. Social factors The social factor is comprised of the culture, beliefs, and ethics that are subsequently leads the direction of the society towards anything that it finds more effective. These social factors are helpful for the business in targeting and segmenting the market classes. The social factor does help to get the most effective outcome from business by encouraging the enterprises to evolve their operation, process and offerings according to the current social scenario (Bianchi and Mathews, 2016). Itdoes enhances the competitive level of rivalry in the market as there are heavy chances of losing the particular customer segment in the market as any new competition can emerge in the existing market place with more innovative and preferable means of products and services. These kinds of scenarios involve a large shift of customer share towards the other rival firm and ultimately that leads to the ineffectiveness of business. The social factors in Spain are not much different than any other European country but still the business faces a lot of moderate issues in respect of these elements on the local and regional level. The overall population of the country is nearly about 46.7 million, which speaks different languages comprising mainly of Gallego, Euskera, Valencian, Catalan and off course the Spanish language. The language barriers often disturb the businesses to promote themselves through a single medium and with a single language. Some other social changes that the Spain is currently facing are its low rate of the health index of its people and the increasing population of aged generation and gradual low scale of young people. These factors often lead to misconduct of the promotional event and less effectiveness of the segmenting, as if any hospitality industry will try to target the young and earning generation in this country it will certainly feel a low range of the customer segment. Thus the higher expectation of the company to achieve the goals of attracting 6
more and more people towards their hotel wouldbe less impactful. Along with that the large shares of the market is determined by a range of aged people who are in the segment of between 40 and above The expansion process of Apex Hotel in Spain will definitely face these things as big challenges in operating the business over there and achieving the desired goals and objectives (Baker and Saren, 2016). The company can certainly see through a lot of measures to eliminate the risks of the social factors, like language, multi cultures and obsession of the people with local brandeverywhereincludingthehospitalityindustry.ThesocialclassesofSpainprefers reasonable prices over luxury and the gap between rich segment and middle class section is also wide thus to attain the effective success of the company in its expansion, it can certainly use the pricing strategy in its offerings to make it more reasonable that will help in to gain the maximum attention of the common as well as tourist consumers. Thus the organization here can consider all the external elements of social subsections to plan effectively for the expansion in Spain. Technological factors The technological factors are comprised of the latest and continuous advancements in the technological aspects within any nation or a respective region. The ultimate techniques that are being used by existing competition or any new technology that has been introduced or in the trend of a particular region enable a business to enhance its performance in the operations and all theprocess(Amankwah-Amoah,BosoandDebrah,2018).Themulticulturalbusiness environment of Spain enforces many companies to use the most innovative and effective techniques that can help the organization to beat the extent of competition as well as to attract moreandmorecustomerstowardsthem.Spainiswellflourishedwiththeadvanced technological factors thus it gets the more opportunities as in encouraging the small and foreign firms within the boundaries of nation. This helps the country in enhancing its growth and economic development. Spain is the only first country to implement the electronic identification of each of its citizens and every belonging among the European countries. There is an immense level of competition in the hospitality and accommodation service markets as there is high inflow of tourists every year. Thus it is the most crucial element for the Apex Hotel to undertake the most effective tools and technique to operate its business sin Spain and to lead among the strong rivals in the same industry. The research and development department of Spain is quite efficient in providing nee innovation and invention for its local people. Thus the people over there have developed a habit of demanding new and innovative techniques to be displayed and associated 7
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with the offering that a company provides in the market place. The expansion of Apex hotel UK in Spain should meet the following expectations of the customers and local market shares to capture more and effective shares among them (Armstrong and et. al., 2015). The company can certainly adapts the different, new and effective techniques that are being in practice by existing hotels. Thusit will help the organization to bring more attention of the local consumers towards them. Being an international venture it would be more effective as well as influence to implement the locally developed technologies at a limited level. This will help the hotel to get the maximum amount of profitability as well as it will help in saving a lot of time and cost of the company to research. The participation of Spain in the technological aspects of security, traffic control, renewable energies, civil engineering, and mobile communication is quite impressive e and remarkable as the company holds a quite distinctive approach in the EU (Brouthers, Nakos and Dimitratos, 2015). With this is it influences many foreign industries to invest and expand their business in the home land of Spain. The rapid flow of technological advancement in the country arethe major reason for the mass industrialization as this will also provide the opportunity to Apex Hotels to establish its venture chain here and gain an effective amount of positive outcomes in the initial stage of the business, asnew technologies such as the social media marketing and artificial intelligence based security system by Apex Hotels, in the hospitality industry will bring the revolution in the sector and that will attract the high class and innovation friendly audience of the nation. Environmental factors The environmental factors of any particular region or a country involves those elements that are comprisedof the natural resources or any distinctive features that are the integral parts of the respective natural environment of the country (Skudiene, Auruskeviciene and Sukeviciute, 2015). The environmental factors certainly includes the natural habitat, any nature oriented location,climaticconditions,andsoon.Whiletheseelementsareconsideredasthe incontrollable factors, they impacts on the ultimate workings of the business either directly or indirectly. The influence of the environmental factors on new and foreign industries within the confines of Spain, differs accordingly. Spain is considered as the sunniest country among the different nations of Europe, the country is also has a renowned position among the world that determines it as the most favorable holiday destination of the people from all over the globe. The 8
most visited and globally popular cities of the nation are Madrid, Barcelona, Valencia, Seville, and Malaga. Along with that the country has a wide range of ancient and popular heritage sites. The well flourished natural sceneries of the country including big and beautiful mountains and valleys, wide range of the Spanish food, different kind of cuisines, dishes and traditional customs (Martin and Javalgi, 2016). These kind ofenvironmental elements attracts more and more of tourist and travellers from all over the world. Thus with a large number of tourist inflow the country invites more number of hospitality basedindustries in the country to operate their business and provide the best services to the tourist so that the nation gets a goodwill in the other respective countries as well. The reason for the environmental development is the attraction of the tourism as it contributes at the rate of 11 % in the overall economy of the nation. The introduction of Apex Hotel in the environment of Spain can be a great opportunity to both the tourism industry as well as for the hotel itself. The growing numbers of tourists and domestic visitors will provide a certain opportunities to Apex Hotels as the hotel is a foreign intermediary, it will certainly attract the tourist, along with that the hotel can pick some of the top spots of tourism and heavy gatherings for the establishment of new hotel venture there. This will enhance the reach of the hotel and maximum capturing of that respective market place will also be increased in favor of Apex Hotels. CONCLUSION The above report and its findings conclude that it is crucial for any company to undertake all the aspects of global marketing system to expand the business in other foreign countries. The evaluation of the external environmental factors and set up the planning accordingly as per the outcomes from the analysis of the environmental factors by considering the characteristics of brand and managing all the respective elements as per the nature of organisation in hospitality industry. The objectives of the respective hotel company in expanding the business in other European country will be solely accomplished as most of the environmental factors offer numerous opportunities to perform and promote the business of respective industry within the confines of the nation. 9
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