The Effect of Globalisation on IHG's Marketing Strategy

The Effect of Globalisation on IHG`s Marketing Strategy
Marketing Essentials BMIH4005

Table of Contents
INTRODUCTION...............................................................................................................................3
MAIN BODY.......................................................................................................................................3
CONCLUSION....................................................................................................................................9
REFERENCES..................................................................................................................................11

INTRODUCTION
IHG group stands for InterContinental Hotels Group, which was founded by Juan
Trippe in 1946, it is a public limited company trading in hospitality industry 17 years ago, it
was first found on 15 April 2003, with having 36,643 employees, 5,977 hotels and 1,899 in
pipeline, 889,852 rooms, by 2012 more than 5,400 of IHG`s hotels, out of which 4,433 are
operated under franchisee agreements, 907 was managed by the company but owned
separately and directly owned were 8, IHG has grown from a very small company to a
massive company handling various branded hotel properties under its wings (Camison and et.
al., 2020). Global head office based in Denham, Buckinghamshire. They also have office
based in America, Singapore, Greater China.
MAIN BODY
InterContinental include Staybridge Suites, Hotel Indigo, Holiday Inn, Holiday Inn
Express, Candlewood Suites, Crowne Plaza, Even Hotels, IHG Rewards Club, Kimpton and
Hualuxe Hotels and Resorts. Groups that are competing IHG are Hyatt, Marriott, Hilton, and
Wyndham Worldwide Corp, also primary rivals of InterContinental Hotel Groups are IAHI,
Plan B Consultants, Bass Hotels & Resorts and Appaloosa Horse Club.
The establishment of Intercontinental Hotels Group's marketing strategy necessitates
the identification of segmentation criteria in order to comprehend customers' unique
purchasing habits. Customers' preferences, desires, and purchasing habits are diverse, and
they are influenced by a variety of factors such as age, gender, lifestyle, income level and
others. Intercontinental Hotels Company can narrow down broad, diverse target audience into
small, tightly identified categories through using segmentation techniques. Market
segmentation surveys are popular way of gathering customer-specific data and can be used to
build categories with similar characteristics (Hao, Xiao and Chon, 2020). Intercontinental
Hotels Company will segment market into small homogeneous categories after recognizing
the specific purchasing behaviour of consumers and gathering the necessary information
through surveys. Customers' geographic, socioeconomic, behavioural and psychographic
profiles may all be examined. One or both of these segmentation techniques may be used by
the organization to select the appropriate market segments to create a successful marketing
strategy. Geographic segmentation splits the industry into geographic areas such as cities,
countries and also regions. Intercontinental Hotels Group will be required to segment market
based on demographic factors such as gender, age, salary and ethnicity. Customers would be

segmented based on their shopping patterns, such as level of use, rewards sought, use
occasions and brand loyalty, if Intercontinental Hotels Group opts for behavioural
segmentation. Customers can be segmented based on their lifestyles, desires, beliefs, beliefs
and characteristics if psychographic segmentation is used.
Market targeting idea is based on the premise of defining various market segments
based on their individual needs, determining most profitable segments and focusing resources
on those based on their importance to organization's core business, growth and profitability.
Intercontinental Hotels Group should carefully select target segment whose demands and
aspirations complement the company's capital or capabilities after splitting the broad
diversified consumer sector into smaller categories with the homogeneous characteristics.
The economic appeal as well as growth potential of defined segments can be used to target
them. Based on the characteristics of the segments as well as company’s finances, skills and
development goals, Intercontinental Hotels Group will select one or even more segments
(Jiang and Wen, 2020). Intercontinental Hotels Group now has to develop a consistent
positioning statement which will develop a compelling picture of the delivered commodity in
minds of consumers after segmenting the consumer pool and selecting the correct target
market.
IHG's primary goal is to build Amazing Hotels Visitors Enjoy and all done based on
the guest and the workforce and a clear vision on what its objectives are. As a franchisor,
promoter and on a patented and leased basis, it manages hotels in three distinct ways. It also
runs the industry's biggest hotel loyalty scheme in the world, known as the Priority Club
Rewards, and has 48 million worldwide participants. Sees three areas are formed by IHG:
The Americas; Europe, the Middle East and Africa; and Asia Pacific. 2(Annual Re of the
IHG
IHG has managed themselves wisely over the past few years to be more efficient and
successful and make the best use of its global status. IHG's primary focus was a mainly
franchised and administered, fee-based sector (Liao, 2020).
Strategy employed from the beginning up until the present period:
Bass, the principal brain behind the Intercontinental Hotel Group's entire creation,
played a significant role in this organization's gradual but steady development from a small
business to an internationally recognised company. Based on trial-and-error round, Bass has
developed this large company that he has explored with different principles of owning and