Malmaison Hotel Group Strategic Analysis

This assignment delves into a comprehensive analysis of the Malmaison Hotel Group's strategic position. It examines the company's mission, vision, and achievements, including awards and recognitions. A detailed situational analysis is conducted, considering both macro (political, economic, social, technological, legal, environmental) and micro (Porter's Five Forces) factors influencing the hotel industry. The analysis highlights opportunities and challenges for Malmaison's overseas expansion. Finally, the assignment provides recommendations for future growth, emphasizing the importance of promotion activities.

Running Head: International Marketing for Travel and Tourism
International Marketing for Travel and Tourism

International Marketing for Travel and Tourism 1
Contents
Introduction......................................................................................................................................3
Situational analysis..........................................................................................................................4
Macro analysis.............................................................................................................................4
PESTLE analysis.....................................................................................................................4
Microanalysis...............................................................................................................................5
Porter’s five forces...................................................................................................................5
Internal and external environment analysis.....................................................................................6
Internal analysis (McKinsey 7-S)................................................................................................6
SWOT analysis of Malmaison Hotel...........................................................................................8
Strengths..................................................................................................................................9
Weakness.................................................................................................................................9
Threats.....................................................................................................................................9
Opportunities.........................................................................................................................10
International Marketing Practises of MALMAISON....................................................................10
Market selection and entry modes.................................................................................................11
Recommendation...........................................................................................................................16
Marketing segmentation............................................................................................................16
Targeting....................................................................................................................................17
Positioning.................................................................................................................................17

International Marketing for Travel and Tourism 2
Cost-effectiveness of sales promotion...........................................................................................18
Issues affection overall strategy.....................................................................................................18
Recommendations..........................................................................................................................19
Product.......................................................................................................................................19
Price...........................................................................................................................................19
Promotion..................................................................................................................................19
People........................................................................................................................................20
Place...........................................................................................................................................20
Process.......................................................................................................................................20
Physical Evidence......................................................................................................................20
Risk assessment of.........................................................................................................................20
Conclusion.....................................................................................................................................22
References......................................................................................................................................23
Appendix........................................................................................................................................26
Appendix 1.1..............................................................................................................................26
Appendix 1.2..............................................................................................................................26
Appendix 1.3..............................................................................................................................26
Appendix 1.4..............................................................................................................................29

International Marketing for Travel and Tourism 3
Introduction
The report talks about the Malmaison Luxury and Boutique Hotel Group. The marketing
manager of the hotel will review the current marketing and promotional activities of the
company. The analysis includes the internal and the external analysis of the company. According
to the current marketing and promotional activities, the manager of the hotel will outline the new
International marketing plan that helps the hotel to enhance the existing practices of the
Malmaison hotel.
Malmaison is a collection of 15 Boutique hotels across the UK, the company provides the
services in across the globe, this is the reason it is one of the world's leading award-winning
serviced apartments, hotel residences, and Boutique lifestyle hotels. The hotel was established in
the year 1994, it is owned by MWB group holdings. The brand promise of the hotel is “Hotels
that dare to be different”. Malmaison is having a turnover of $60.271 million in the year 2009
(Malmaison, 2017). Malmaison Hotels are mainly located in the city centers in large and
medium-sized cities within Scotland, England, and Northern Ireland (Malmaison, 2017). (Refer
Appendix1.1)

International Marketing for Travel and Tourism 4
Situational analysis
The situational analysis is the collection of methods that are used by the manager to analyze the
internal and the external environment so that company will be able to understand the capabilities
customers and the business environment. The analysis is done to identify the future opportunity
for growth and expansion related to the company. The situation analysis of the Malmaison hotel
is discussed in Appendix1.3.
Macro analysis
PESTLE analysis
P-political factors: - The political factors create a big impact on the Hotel across the world in
respects to the legislation or the changes in the policies. The changes in the legislation or policies
related to the tourism create an impact on the hotel and according to the changes the company
have to abide the laws (Robinson, Fallon, Cameron, and Crotts, 2016). For instance, at many
places the smoking is ban, this creates both positive and negative impact on the hotels across the
globe.
E-economic factors: - The economic factors include the inflation rate, exchange rate, income of
the people, and purchasing power of customers (Bertozzi, Ali, and Gul, 2016). The company
provides the services to customers belong to a high and middle-income group. The economic
factors impact affects the luxury hotels for example; the purchasing power of the people in the
UK is high which result in an increase in the sales of the products and which helps in generating
the profit.

International Marketing for Travel and Tourism 5
S-social/cultural factors: - The social and the cultural factors somewhere create a positive
impact on the working of the sector. More and more people today are likely to visit the places so
they are planning for more and more tours. Tourist likes to learn more about the new places and
culture of the places (Radojevic, Stanisic, and Stanic, 2015). The companies involved in the
sector gets the advantage due to these social factors and these companies try to present their
culture so that they can grab the attention of the peoples.
T-Technological factors: - Technological factors are creating a major impact on the working of
a sector as the need for the technology for providing the services is continuously increasing. The
companies involved in the sector are bringing new ways by doing so they are able to create the
competitive advantage (Zervas, Proserpio, and Byers, 2014). The sector is making the use of the
technology for providing services or facilities to their guest.
L-legal factors: - The major legal factors that will impact the business include the violation of
different laws and regulation by the business. There are many hotels involved in the sector that
operate the business internationally and this is the reason they have to make sure that they fulfill
all the legal obligations. For instance, Employment Rights Act 1996, the Employment Act 2002
and several other legislative provisions (Skokic, Lynch, and Morrison, 2016).
E-environmental factors: - In the sector, the environmental factors are most crucial factors, the
company needs to make sure that they are following the laws related to the waste recycling and
disposal along with the electricity consumption laws, For example; Environmental Protection
Act 1990, recycling act, and Environment Protection Act, 1986. These laws are must be followed
by the companies involved in the sector so that companies can fulfill their responsibility towards
the nation (Mohammed, Guillet, and Law, 2014).

International Marketing for Travel and Tourism 6
Microanalysis
Porter’s five forces
Competitive rivalry: - The competitive rivalry is increasing among the companies in the
industry; more and more hotels are taking place. The Malmaison hotel faces rivalry from the
budget hotels, for instance, Hilton, Hotel Ibis Budget Newport, and The Hub. These hotels are
the competitors of the company because these hotels have operations across the world in many
countries. Along with this, the competitors try to make use of the technology which helps them
to create the competitive advantage against the Malmaison hotel.
Bargaining power of suppliers: - The bargaining power of the separate supplier’s is becoming
strong because they help in bringing the technology advancement on which the business of the
company relies (Moreno-Izquierdo, Ramón-Rodríguez, and Perles-Ribes, 2016). The need of the
technology for the company is continuously increasing to face the competition. The need of the
human resource in the sector is increasing due to the high retention rate in the industry. The
supply of the human resource is enhancing as a company wants skilled labors.
Bargaining power of customers: - The buyer can easily switch to the hotels where the customer
gets the best prices. The increase in the budget hotels opened the ways for the customer to get the
best prices. The strong reputed hotels want to attract the first time customer because knows this
very well that they will be able to retain the customer (Lopes, 2016). Most of the buyers exercise
their power when it comes to the booking of the rooms in bulk, at that time due to high prices the
customers of Malmaison hotel may shift.
The threat of new entrants: - There is a drastic increase in the hotel industry from past few
years which results in the growth of the industry. The new entrants are likely to come into the

International Marketing for Travel and Tourism 7
existence but many hotels might face the threat of the new entrants. Though, to enter the market
there is need of the huge capital which comes with the risk. The company who enter the market
can only open the operations at a small level to expand it on a wide level the new entered
company have to form the links and the relationships.
The threat of substitute products/ services: - The threat of the substitutes to the Hotel industry
is moderate; the company is a large chain that provides the services across the globe. Malmaison
hotel also faces the substitute threat because there are many customers who are loyal to the
brands to prevent that company can make use of attractive strategies (Tukker, and Tischner,
2017). Though, there are some of the customers who can switch when they find good and
attractive packages.
Internal and external environment analysis
Internal analysis (McKinsey 7-S)
The McKinsey 7-S model consists of interdependent factors that are analyzed by the company;
the factors include the hard and the soft elements (Devang, Kruse, Parker, and Siren, 2017).

International Marketing for Travel and Tourism 8
Structure- The structure maintains by the company includes the top to bottom structure. The
lower level reports to their manager and their manager will report to the high-level management.
The Malmaison hotel manages the structure from the Top to bottom.
Strategy- Malmaison hotel strategy is to provide exceptional services to the customers in the
beautiful and stylish places so that customers can visit the hotel again and again. The aim of the
company is to overseas the growth internationally; the company needs to expand its operations to
generate the brand awareness in the market. The organization follows the segmentation strategy
and they operate in mid-market, luxury, and premium (Gawankar, Kamble, and Raut, 2015).
Share Value- The different values in which Hotel believes in include innovation, people
diversity, passion for excellence, social responsibility, joy at work, and increase the expectations.
The Malmaison hotel is well known aware of the supporting social needs and the ensuring
employment from within the local community.
System- The system of the Malmaison hotel include the lodging management system which is
divided into different modules such as front office, guest history, accounts receivables, travel
agencies, group sales, and yield management. The hotels search and retrieve guest information
from various fields that include the name, address, confirmation numbers and other fields. Other
features that are provided by the hotels include the easy reservation input, maximum room
occupancy, availability of the confirmation letters and pre-printed registration cards along with
this the company provides the flexible package configurations (Devang, Kruse, Parker, and
Siren, 2017).

International Marketing for Travel and Tourism 9
Skill- The skills that the company maintain is a commitment to customer satisfaction, the staff of
the company contains the problems solving skills. The skills that are developed in the group
include the teamwork skills, culture, ethics and the leading brands.
Staff- Malmaison provides the training to the employees so that they can meet the expectations
of the customers. The employees of the hotel are capable enough to handle the stress,
punctuality, and the staffs contain the knowledge of foreign languages so that they can easily
understand the customer’s needs.
Style- The management believes in providing the good diversifies environment across the world.
The brand goal is to retain and to attract workforce so that they will be able to provide the
exceptional level of service. For instance, the company provides the attractive salary packages,
bonus to employees, and the flexible working environment (Gawankar, Kamble, and Raut,
2015).
SWOT analysis of Malmaison Hotel
The SWOT analysis is the internal as well an external analysis in which the strength and
weakness of the company show internal analysis and opportunities and threats of the company
show the external analysis (Hollensen, 2015).

International Marketing for Travel and Tourism 10
Strengths
 The Malmaison is a well-known brand across the works, it is known for its boutique
décor and its impeccably high quality and standard of service.
 The reputation of the brand is based on the luxurious place where the guest can stay and
can relax, the company believes in taking care of their guest beautifully and stylish.
 The customer satisfaction is a strength of the company, the guest of Malmaison are
satisfied with the services provided by the company (Malmaison, 2017).
Weakness
 The advertising and the promotional activities perform by the brand are on a small basis,
these activities are not active across the local community, this is the reason company lost
its customers.
 The company has to bear the high cost while maintaining the company's current position
in the market. The cost of maintaining the staff and the décor of the hotel is more than the
other hotels (Malmaison, 2017).
Threats
 The demand for the budgets hotel is increasing across the world, the sector is facing the
threat of the budgets hotel.
 Many hotels have to face the economic downturn because at the time of economic
downturn the people get bit reluctant for their holiday trips.

International Marketing for Travel and Tourism 11
Opportunities
 The sector has the opportunity to grow their business in the market because the current
market exchange rate of different countries is encouraging the travel of the tourist across
the world.
 The opportunities to bring innovation in the products or services offered by the company
to their guest are increasing day by day; the Hotel needs to grab the opportunities
available in the current market. (Refer Appendix 1.2)
International Marketing Practises of MALMAISON
The Malmaison globally current marketing practices show the growth opportunities of the
company in the near future. The company needs to think before making the investment in the
international market; the company might face the political and economic factors (Czinkota, and
Ronkainen, 2013). The Malmaison has an opportunity to expand the business in the different
geographical places the reason being the social and cultural factors show the behavior of the
customers towards the tours. More and more people like to visit the places to learn the culture of
the company. While expanding the business in the different geographical places the company
faces the legal laws that are must to be followed by the company.
While expanding the business across the borders the company should consider the economic
factors because exchange rate matters a lot for the company, so a company will expand the
business where they find comparative high exchange rate, the European enhances the travel and
tourist. The expansion in the European market will lead to the profitability of the company.
(Refer Appendix1.3)

International Marketing for Travel and Tourism 12
Market selection and entry modes
The Malmaison hotel is selecting the markets in which the company is looking to expand the
business. The company selected by the company include China, Norway, and the USA as these
markets are considered as the potential market where a company is looking to expand the
business. The selection of market is based on the 12C’s framework and considering the analysis
the company selects the country and the entry mode.
12 C’s China Norway USA
Country There is no political
barrier as the country
provides the free trade
zone. In China, the
expansion of
international hotel is
increasing.
The government of
Norway allows the
international brand to
expand the business. The
market of the country
includes more of the
luxury hotels but not
branded hotels. The
economic condition of
the country is improving
in the international
market (Myklebust,
2017).
The market of the
USA is welcoming
market; the
international brands
can easily enter the
market and can
expand the business
(Statista, 2017).
Culture The culture of China for
the hotel industry is
The Norwegian capital
carries on enjoying
The USA is well-
known tourist place,

International Marketing for Travel and Tourism 13
increasing. Most of the
tourist like to visits
China for tours.
increased demand from
the international visitors.
the tourism and
hospitality industry is
contributing in the
GDP and providing
employment to the
candidates.
Concentration The area of China is
9.597 million km Square
and the market of China
for the hotel industry is
perfect competition
market.
Oslo’s population is
estimated to grow faster
than that of any other
European capital city in
the following two
decades (Myklebust,
2017).
The area covered by
the USA is 9.834
million km Square
which is more than
other countries.
Choices The choice of the tourist
in China varies as there
is a presence of the
domestic and the
international hotels. The
tourist in China doesn't
want to pay more
amounts for services so
a luxury hotel like
Malmaison hotel might
The choice of tourist in
Norway is for the luxury
hotels because there is
no as such availability of
the domestic hotel.
The choices of the
tourist might vary; the
hotels available in a
country can be
domestic and
international. Most of
the tourist visit luxury
hotels.

International Marketing for Travel and Tourism 14
face the problem.
Consumption The area of the country
is wide this is the reason
the consumption of the
services is more in
China. In China, The
tourist places are
increasing rapidly which
is attracting the
customers.
The consumption of the
services is less than the
other two countries.
Though the tourist
market of Norway is
predicted to increase
rapidly.
The consumption of
the services provided
by the luxury hotels is
more in the USA than
the other countries.
Contractual
obligations
If company expand the
company gets involved
in the contract so a
company has to provide
the services to the
customers as a customer
can't breach the contract.
The companies involved
in the contact have to
fulfill the customer’s
expectations and the
breach of the contract
might leads to the legal
actions.
The company has to
get involved in the
contract if the
company is looking to
expand the business in
the USA.
Caveats The government of the
country encourages the
expansion plan.
The government of the
country encourages the
expansion plan.
The government of
the country
encourages the
expansion plan.
Capacity to pay The capacity to pay the The capacity to pay the The capacity to pay

International Marketing for Travel and Tourism 15
amount for product and
services is low and this
is the reason the luxury
hotels in China keep the
prices of the services
quite moderate so that
they can make the
product affordable for
the customers.
amount of product and
services is moderate. The
prices kept by the hotels
for the services are
affordable.
the amount is
comparatively high.
Most of the tourist
who visits the USA
has the capability to
pay the expenses
(Select USA, 2017).
Communication The company can
communicate with the
customers and these
activities help the
company to make the
customer aware of the
product and services
offered by the company.
In Norway, the company
can make use of
promotional activity to
generate awareness
about the availability of
the services in the luxury
hotel.
The company has to
use the strong
promotion activity
that helps the
company to
communicate the
message to a large
audience.
Commitment The hotels commit to
their customers that they
are going to provide the
delight services to the
customers.
The hotels commit to
their customers that they
are going to provide the
delight services to the
customers.
The hotels commit to
their customers that
they are going to
provide the delight
services to the

International Marketing for Travel and Tourism 16
customers.
Channels of
distribution
The distribution of the
products and services
varies but talking about
Malmaison the company
provide service of pick
up and drop till the
airport.
The hotel provides the
extra services to the
customers so that they
can enhance customer
experiences.
The Malmaison hotel
provides the extra
services to the
customers so that they
can enhance customer
experiences.
Currency The currency of China is
Yuan Renminbi,
The currency of Norway
is Norwegian Krone
(NOK) (Myklebust,
2017).
The currency of USA
is $ dollars.
Considering the analysis based on the 12C framework it is recommended to the Malmaison hotel
to expand the business in the USA. The USA is the place where most of the tourists like to visit,
if company expand the business in the USA then the company will surely make the profit
because the purchasing power of the people in the USA is more than the other countries. There is
a presence of growth opportunities for the company (Select USA, 2017).
The successful expansion in the country is possible because of the correct market entry mode.
The recommended mode of entry for the luxury hotel is a joint venture or whole own subsidiary.
Malmaison hotel can make use of the whole owned subsidiary as this is the best way to enter the
market of the USA. The reason behind the selection of the whole own subsidiary as the company

International Marketing for Travel and Tourism 17
can arrange the sufficient amount of funds from their stakeholders as the company fulfills their
responsibility towards their stakeholders. So the stakeholders of the company trust the
company’s decision towards the expansion. Apart from this, the sales of the company are good
so the company is able to make the profit and is able to retain the earning for the expansion. The
company made a pre-tax profit of Euro 3.4 million from the turnover of the Euro 131.5 million in
the year 2015. Also, the company is acquiring the other companies which need funds, so the
company can expand the business through whole own subsidiary (Millett, 2016).
Some of the advantages of the whole own subsidiary are given below: - The firm will be able to
maintain the single control on the market of USA and firm will not share the profit with any
other person. There is risk associated with success in the whole owned subsidiary. The selection
of the market will lead to the success no matter sooner or later. The wholly own subsidiary is the
best option as there will be no conflict because only one person will control and the company can
hire the employees without any permission and involvement of another person (Chang, Chung
and Moon, 2013).
Recommendation
Marketing segmentation
The marketing segmentation refers to as the different segments or groups to whom the company
can offer their product and services. Below given market segmentation is the recommended
market of USA to the company.
Geographically segmentation- The Malmaison hotels are based across the country, this makes
it easy assessable for the people. It is recommended to the company to expand the business in the

International Marketing for Travel and Tourism 18
USA then the company should select the prime location in the USA where the company will be
able to attract the customers (Weinstein, and Cahill, 2014).
Behavioural Segmentation- The tourists who travel for the business purpose want luxury
hotels, comfortable rooms along with the amenities facilities. Each and every people have
different behaviors towards the services provided by the Hotel. The company target the segment
who wants luxury hotels, comfortable rooms and amenities facility. Malmaison hotel believes
that they fulfill the demand of the customers by providing them the comfort, luxury hotels, and
amenities facilities.
Demographic segmentation- The Company should target both male and female tourist and
travelers. Talking about the age group, the company provide the services to people having
different age group such as 18-25, 25-55+ along with that the company should target the family
life cycle people as well (Rogerson, 2013).
Targeting
The Malmaison target the entire segmented group this shows that company makes use of the
multi-segment targeting or the differentiated marketing, in differentiated targeting company
target two or more than two segments. The major target of the Malmaison Hotel is a business
traveler and the leisure tourist markets. The hotel provides the benefits to the leisure tourist such
as restaurants, bar, gym, individual decorative rooms which make them spend the long weekend
(Ali, and Amin, 2014). It is recommended to the company to segregate the time that they are
going to spend with the customers; the hotel spends the weekdays on business travelers and rest
days on the leisure customers or tourists. The hotel should targets all age group people including
male and female.

International Marketing for Travel and Tourism 19
Positioning
The company is providing the products to the rich and middle-income group people, it is
recommended to the company to provide the high-quality services at the reasonable prices. The
company will be able to form a strong market position in the USA market (Jani, and Han, 2014).
Though, the market of USA is a competitive market because there is an availability of the
Luxury hotels. The Malmaison hotels have to keep the standard prices and services so that the
company will be able to deliver delight experiences which make the tourist come back again
(Weinstein and Cahill, 2014). By doing so, the Malmaison hotel will be able to register the place
between the High prices and the high quality.
Cost-effectiveness of sales promotion
Sales promotion is an effective promotion strategy that is used by the company to achieve the
objectives of promotion activity. There are many techniques through which the Malmaison will
be able to make the sales promotion cost-effective (Bowie, Buttle, Brookes, and Mariussen,
2016).
 Money off – Providing benefits to the customer by offering them additional products with
little or no extra charges. The company provides the cancellation charges off if the
customers inform the company prior 48 hours of the arrival and cancel the booking
(Malmaison, 2017).
 Coupons- The coupons can be provided by the company on the purchase of a product
such as free dinner coupons for couples. Along with that, the company offers the discount
on the booking of the 6 rooms or more and for this, the company provides the coupons.

International Marketing for Travel and Tourism 20
 Free gifts- Along with the services company can provide the free gift to loyal customers.
The company offers gift card purchasers with facts about the redemption status of the gift
cards they purchase. The gift card provided by the company can’t be used by the
company pre-paid and non-refundable rates online (Malmaison, 2017).
Issues affection overall strategy
There are many issues that can create an impact on the overall strategy of the company. The
competitors of the company can bring more strong promotion strategy which will again make the
company’s promotion strategy behind. While implementing the strategy if in case the company
will take time them the process will get delay and this will create a problem for the company. If
in case the promotion strategy selected will not be able to create the impact on the targeted
audience then the expenditure done by the company will not be effective.
Recommendations
Product
The core product of the company is a physical venue where the customer needs are satisfied by
eating, drinking or sleeping. Malmaison needs to provide the high standard quality services with
innovation in the product in the USA. The company should try to bring the innovation in the
services so that the company will be able to enhance the customer satisfaction in the selected
country. For Example; the company can keep the attractive packages for the tourist at low prices
to grab the attention.

International Marketing for Travel and Tourism 21
Price
The pricing strategy that is followed by the company is premium price strategy, it is
recommended to follow the pricing strategy considering the internal and external factors. The
economy of the company shows the amount that the customer is willing to pay (Bowie, Buttle,
Brookes, and Mariussen, 2016). In the USA the company should implement the moderate pricing
strategy so that they can make the space in the market.
Promotion
The activity of the promotion is must for the company because Malmaison is having a poor
promotional activity with the customers. It is recommended to the company to perform the
promotion activity by using online marketing, sales promotion, and advertising in the USA
(Hoque, 2013). Through this company will be able to create the awareness about their brand the
innovative services that they provide to the customers. For instance; the company should do tie
up with the travel agency to make the tourist aware of the services and facilities of the company.
 Online marketing- The Malmaison hotel should make use of the social media platforms
like Facebook's, Twitter and LinkedIn where the hotel can share the attractive deals and
the images which enhance the awareness.
 Sales promotion- The sales promotion can be used by the company by providing the
money off, coupons and the packages (Becerra, Santaló, and Silva, 2013).
 Advertisement- The advertisement through magazines or television will help the
company to enhance the awareness about the product in the market.

International Marketing for Travel and Tourism 22
People
The company recruits the talented employees for their company, and they spend a huge amount
on the development of the employees. It is recommended to the company to retain the
employees. The company should provide the career opportunities to become the leader of
Malmaison (Huang, and Sarigollu, 2014). In the USA, the company can get the skilled labor and
the people who can speak with the customers in the different language that will help the
company to generate the customer’s satisfaction.
Place
The place or location matters a lot for the hotel industry. The first and the foremost decision that
the company makes is a selection of the place, the Malmaison hotel has to select the prime
location for an opening hotel in the USA. The USA is known as the tourist place, so the company
should select the place near to the tourist place.
Process
The Malmaison hotel follows the systematic process in the USA which includes designing of
innovative services for the customers, customizations in the product and managing the hotel in
such a way so that work can be done effectively. In the USA, the company implements the
training programs for the Employees so that the employees can follow the process in a
systematic way, the employees of the company deals directly with the customers so while
dealing the process of dealing will help in meeting the expectations of the customers.
Physical Evidence
The physical evidence includes the facilities that are provided by the Hotel. The company makes
sure that they provide the facilities like Gym, restaurants, bar, and decorative rooms along with

International Marketing for Travel and Tourism 23
comfortable and organized waiting area. For example; In USA, the company should introduce
different decorative rooms for the couples along with packages.
Risk assessment of Suggested strategy
The company might face many uncertainties that can create the impact on the working of the
company. Some of the risk that might be faced by Malmaison includes-
 Hiring the effective workforce is one of the risks that can be faced by the company while
expanding the business in the USA. The company has to offer the attractive packages so
that they will be able to grab the workforce having skills (Humphreys, et.al, 2017).
 Another risk is while implementing the promotional activity company might not be able
to communicate or share the right message to the customers. The right use of the
promotional activity is another risk as a company was not innovative in the promotional
activity so the company might face the issue. The failure of the promotional activity
used by the company is one of the crucial risks.

International Marketing for Travel and Tourism 24
Conclusion
The report throws light on the current marketing analysis of the Malmaison Luxury and Boutique
Hotel Group. The macro and microanalysis are discussed which shows how the factors can
create an impact on the working of the company. Considering the current marketing environment
analysis the international marketing practices are discussed which include the recommendation
regarding the segmentation, targeting and positioning of the company. While expanding the
business across the border it is important for the company to consider the product, price,
promotion and the people. For expanding the business the upcoming market and place are
selected by the company. Though some of the obstacles are there in regards to the services these
obstacles are going to improve with the immediate steps and the company will be able to
maintain their reputation.

International Marketing for Travel and Tourism 25
References
Ali, F. and Amin, M., 2014. The influence of physical environment on emotions, customer
satisfaction and behavioral intentions in Chinese resort hotel industry. Journal for Global
Business Advancement, 7(3), pp.249-266.
Becerra, M., Santaló, J. and Silva, R., 2013. Being better vs. being different: Differentiation,
competition, and pricing strategies in the Spanish hotel industry. Tourism Management, 34,
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Appendix
Appendix 1.1
The hotel is one of the world's leading award-winning services apartments, boutique lifestyle
hotels, and hotel residences. The Malmaison Luxury and Boutique Hotel are acquired by the
Frasers hospitality which is leading global hospitality group that provided the gold – Standard
services and residence across Europe, North Asia, Africa, Southeast Asia and Australia.
The hotel commits to anticipates and exceeds the evolving needs of the executive travelers
through innovation and by providing its customer space, family and community away from
home.
Appendix 1.2
The mission of the company is to open thirteen boutique hotels across the UK. The company
wants to provide the delight services to the customers. The company got many awards such as
best small hotel company 2014, business travel awards, best smaller hotel chain 2013, business
travelers awards, Best in Interiors Award 2013 and the Malmaison Oxford - The Best Kept
Secret Awards.
Appendix 1.3
Situational Analysis
Macro Analysis

International Marketing for Travel and Tourism 30
 P- Political factors- The hotels also get affected by the terrorist attack which took place
in the country. These factors enhance the threat in the mind of the hotel operations. The
Malmaison group need to take care of the political impact while expanding the business
in international countries.
 E-Economic factors- The High Exchange rate of UK overseas results in decline in the
tours by the people. The Malmaison group needs to consider the economic factors which
deciding the overseas growth of the company.
 S- Social factors- The purchasing power of the UK decides that tourist of that company
will plan for tours or not, the customer behavior matter a lot. The customer behavior
creates an impact on the overseas growth of the hotel.
 T- Technological factors- To bring the growth the Malmaison hotel needs to adopt the
innovative technology that can be used by them in the products and services.
 L- Legal factors- While expanding the business a company should fulfill the legal laws
of the country where they are planning to expand the business.
 E- Environmental factors- The business operated by Malmaison group in any country
will be safe until the time they are taking steps to reduce the waste of the products.