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International Marketing Plan - Hotel Ritz-Carlton
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Added on 2020-04-21
International Marketing Plan - Hotel Ritz-Carlton
Added on 2020-04-21
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Running Head: International Marketing 1International Marketing plan for Hotel Ritz-Carlton
International Marketing 2ContentsIntroduction......................................................................................................................................3Situational analysis..........................................................................................................................3PESTEL analysis..........................................................................................................................3Porter’s five forces analysis.........................................................................................................5Internal and external business analysis............................................................................................6Value chain framework................................................................................................................6SWOT analysis............................................................................................................................6Marketing practices.........................................................................................................................7Market comparison: 12C framework...............................................................................................8Market selection and market entry...............................................................................................8Ansoff matrix...................................................................................................................................8Marketing mix.................................................................................................................................9Risk evaluation..............................................................................................................................10Conclusion.....................................................................................................................................11References......................................................................................................................................12Appendix........................................................................................................................................151.Macro Analysis- PESTEL analysis....................................................................................152.Micro analysis- Porter Five Forces.....................................................................................163.Value chain analysis...........................................................................................................174.SWOT analysis...................................................................................................................195.12 C frameworks.................................................................................................................206.Ansoff matrix......................................................................................................................227.Market selection and market entry.....................................................................................237.1 Market selection...............................................................................................................237.2 Modes of entry..................................................................................................................23
International Marketing 3Introduction This report is basically an international marketing plan for the hotel Ritz-Carlton which isbasically UK based hotel chain. Along with UK, Ritz-Carlton is currently operating in differentcountries like South Africa, Ireland and Switzerland. Hotel has effective marketing strategies andtactics along with the core values to provide commitment to the customers. This report basicallydiscusses about the international marketing plan for the hotel Ritz-Carlton that is seeking for thebusiness expansion in the international market. The report focuses on the PESTEL and PorterFive Forces analysis of overall hotel industry. Along with this, SWOT analysis, 12 C frameworkand marketing mix are also included in the report. The strategies for the risk evaluation are alsodiscussed on the report (Turnbull & Valla, 2013)Situational analysis PESTEL analysisPolitical-The major political factors that give direct impact on Ritz-Carlton Hotel are related toterrorism and also international relations. The threat frightens the people from travelling and alsothe military conflict can disrupt the international air travel. Every organization has to follow thepolitical regulations, so that the company can easily expand the operations in the market. In theenhancement of international tensions and also the rise in the new terrorist organization the directimpact will be on the company. Fall in the air travel would reduce the demand for the hotelrooms. To conduct the operations internationally, it is essential that the company should givefocus on the political factors (Roger, 2013).Economical-The problem that is related to Ritz-Carlton Hotel is the high exchange rate. Enhancementin the high exchange rate will give impact the number of travelers. The economic threat isconcerned with growing of the income inequality in any countries. Before expanding thebusiness internationally, it is important that the Ritz-Carlton Hotel should consider the income
International Marketing 4factors. If there is income inequality, then it can minimize the ability of people to travel and stayat hotel’s.Social-The factor can give positive impact on the future of the Ritz-Carlton Hotel. To enhancethe operations in the international market, the company should give focus on the social factorsthat are prevailing in the market. If the social factors are not considered by the organization, thenit can give negative impact on the operations of the organization. This factor also gives impacton the decision making of the consumers and also on the growth rate of the population. If there isenhancement in the level of the families then it can give direct impact on the performance levelof the Ritz-Carlton Hotel in the market (Lawrence et al, 2007).Technological-The development in the technology level that is concerned with the catering industry cangive direct impact on the performance level of Ritz-Carlton Hotel. Also the use of resources andthe innovation pattern can be one of the essential technological factors. The hotel bookings havebecome easy nowadays. Anyone can easily book a hotel room with the help of the internet. Thesocial media like Facebook and websites like trip advisor that gives assistance to both thecustomers and the hotels (Chakravarthy & Coughlan, 2011).Ecological-Environmental changes can also impact on the business operations of Hotel Ritz-Carlton.In the changed weather, the charges of some services are also changed on the environmentrelated products. There are some environment related factors such as flood, heavy rains andstorm which impact negatively on the business operations of hotel. Ecological factors especiallymonsoon season play an important role in the business of hotel as natural factors directly impacton the sales of the hotel industry. Legal-There are various laws and regulations which impact on the services of hotels in themarket. The hotels have to follow various laws in the international market. Various regulations
International Marketing 5are affecting hotel industry as customers get attracted towards the leisure based hotels which arefollowing legal practices and providing safe and secure services. Porter’s five forces analysis The five forces analysis of Ritz-Carlton hotel is basically focused on providing theunderstanding of global competitiveness which is discussed in Appendix 2. The summary os theanalysis is as follows:Bargaining power of suppliers-In case of Ritz-Carlton, the bargaining power is suppliers are low because there is theshortage of uniqueness products and services supplied by them. Along with this, the significanceof the volume of orders for the suppliers of Ritz-Carlton is dominant and there is no switchingcost for the suppliers in the hotel industry. Hotel has effective supply chain practices that ensurethe development of, purchasing from and socially different supplies. Bargaining power of buyers-Hotel Ritz-Carlton has diversity among the customers. In current time, customers havechances to select their desired services from various hotels because of the increased corporativeactivities of hotel at the global level. This is the reason bargaining power of the buyers is high inthe hotel industry (Assaf, Josiassen, Knežević & Woo, 2015).Threats of new entrants-The entry risk of potential competitors for the hotel Ritz-Carlton is very low as there isthe requirement of high start-up cost to start the business. Along with this, there is the stringcompetition for the new entrants in the hotel industry. There are many three stars, four stars andfive stars hotels which are dominating the hotel industry. The big competitors are Hyatt Regency,Marriott international etc that are making the market tough for the new entrants. Competitive rivalry-Hotel Ritz-Carlton has to face strong competition in the business at the global level. It isobserved that Ritz-Carlton has to deal with various competitors and bit is competing with
International Marketing 6Radisson Bllu, Westin, Hyatt Regency, Marriott and various premium segment hotels in theinternational market (Cristina, Enrique & Ricardo, 2012). Threats of substitutes-It is well-known that customers have different choices and perceptions towards anyspecific product. The choice of the customers can be changed because of the variety of hotelslike business hotels, small lodges, eco-friendly hotels, and boutique hotels against the hotel Ritz-Carlton. But, Ritz-Carlton has strong brand image among the customers including wide range ofbranches in the operating market (Martínez, 2012). Internal and external business analysis Value chain frameworkThe value chain analysis for the hotel Ritz-Carlton is discussed in the appendix 3. In thepart of inbound logistics, there are some business activities included like supply chainmanagement, negotiation markups with all the distributors, dealing with various suppliers etc.Further, in the operations part of the hotel, three segments are identified i.e. timeshare segment,ownership segment, and franchise segment. Along with this, outbound logistics of the hotel Ritz-Carlton comprises set of various services and activities, competitive advantage, transportationservices, provisions of highest standards for the customers etc (Jurevicius, 2013). Further,analysis focuses on the marketing and sales part of the hotel and these activities includes primaryactivities of the marketing tactics fir providing additional values to the customers. Marketingteam is involved in this process in order to provide effective services to the customers. Further,there are quality services provided by Ritz-Carlton to achieve competitive advantage in themarket. Customer support executives are available all the time to solve various issues of thecustomers. Ritz-Carlton has developed effective infrastructure in order to provide qualityservices to the customers (Armstrong & Cunningham, 2012). SWOT analysis Hotel Ritz-Carlton is famous brand in the hotel industry of UK which is known as itsunique hospitality services. The SWOT analysis for Ritz-Carlton is done in the appendix part andthe summary of overall objective is described below.
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