Malmaison Hotel Communication & Growth Strategies

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This assignment analyzes the communication strategies employed by Malmaison Hotel to connect with customers and employees. It examines various channels used for effective communication and discusses how the hotel leverages market development and diversification strategies for growth. The Ansoff Matrix framework is applied to understand Malmaison's expansion plans, while also considering the competitive landscape and potential challenges within the international hospitality sector.
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Running Head: International Marketing
Malmaison Hotel
International Marketing for Travel and Tourism
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International Marketing 1
Table of Contents
1.0 Introduction................................................................................................................................2
2.0 Situational Analysis...................................................................................................................4
2.1 Macro Analysis (PESTLE)....................................................................................................4
2.2 Micro Analysis (Porter’s Five Forces)...................................................................................5
3.0 Internal and External Business Environment............................................................................7
3.1 Internal Business Environment of Malmaison Hotel (Value Chain Framework)..................7
3.2 SWOT Analysis.....................................................................................................................9
4.0 Current Marketing practice......................................................................................................10
5.0 Market Attractiveness..............................................................................................................11
Market Selection........................................................................................................................11
Market Entry Options.................................................................................................................12
Barriers to market entry.............................................................................................................13
6.0 Ansoff Matrix Framework.......................................................................................................14
7.0 Marketing Mix Technique.......................................................................................................14
8.0 Evaluation of Risk factors.......................................................................................................16
Management of risk...................................................................................................................16
Conclusion and Recommendations................................................................................................18
References......................................................................................................................................19
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International Marketing 2
Appendices....................................................................................................................................22
1. Situational Analysis:...........................................................................................................22
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International Marketing 3
1.0 Introduction
Malmaison is chain of luxurious hotels and their first hotel was founded in 1994 with the
collaboration of Arcadian International Hotel Group. In 2015, Fraser Hospitality Group
purchased the chain of Malmaison Hotels along with HDV chain (Hotel du Vin) at £363.4
million (Malmaison, 2017). Malmaison Hotel has made their effective image in the hospitality
industry through delivering luxurious and world class services to its guests. With regards to this,
Malmaison Hotel chain is known as the one of the leading brand in the overseas hospitality
industry. Under the name of Malmaison Hotel group, award winning serviced apartments,
boutique lifestyle hotels and hotel residences are included which are the major quality factors of
the organization as well as they are the primary factors of the organization in order to attain the
competitive advantage. Fraser Hospitality Group has enhanced their capabilities in order to
provide luxurious and gold standard services to its customers in Europe, Southeast Asia,
Australia and Middle East, Africa and North Asia. With the help of advanced techniques and
disruptive innovative strategies, Fraser Group attained the peak position in the hospitality
industry across the globe.
Under this report, Malmaison Hotel’s analysis will be conducted in order to evaluate the factors
for expanding the business in the other parts of the world. Currently this hotel is present in 13
locations of UK and those are included in the boutique hotels categories. For analysing the
factors for expanding the business in the international hospitality industry, situational analysis,
analysis of the internal as well as external business environment will be evaluated. In order to
evaluate these factors, SWOT analysis and the Value Chain Framework will be conducted. Apart
from this, Malmaison Hotel’s current marketing strategies will also be discussed for analysing
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International Marketing 4
the organizational market value in the overseas hospitality industry. Market entry options,
strategies, 12C framework and the market selection techniques will also be covered in this report
for evaluating the market attractiveness options for the organization. The last part of the report
will conclude the marketing mix techniques, Ansoff Matrix Framework in terms of strategic
options for entering into the new market for fulfilling the motive of the organization. Evaluation
of risk factors and the cost effectiveness techniques will also be covered and along with this,
management and the assessment of the risk factors involved in the international market will also
be discussed for evaluating the true picture for the Malmaison Hotel Group for expanding their
business.
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International Marketing 5
2.0 Situational Analysis
2.1 Macro Analysis (PESTLE)
Political: Primary objective of the hospitality industry is to attract the tourism from the
international markets through providing them world class qualitative services. Hotel
industry is the major source of income for every country and in order to maintain the
consistency, government authorities develops various policies and the regulations in
order to generate income in the form of tax collections from the international tourism.
Political factors will directly affect the performance of the hotel industry. Thus,
governments build supportive strategies in order to enhance their revenues (Aggett,
2007).
Economic: This includes economic conditions, inflation rate, growth rate, etc. In terms of
global hospitality industry, small change in the economic factors will create big impact.
This is the reason, hotels and other parts of the hospitality industries are promoted on the
regular basis in order to attract the tourism, unique measures are being adopted
(Cornelissen & Cornelissen, 2017).
Social: These factors impact the demand of the services and the products. Hospitality
industry attracts the international tourism through adopting the strategies such as making
available the services which are in regular demand as well as through fulfilling the unique
demands of their guests. This makes the positive image in the guests for global
hospitality industry.
Technological: Technological factors have huge impact over the performance of the
global hospitality industry in various aspects. With the changing customer needs and
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International Marketing 6
trends by the passing time, technological sector has invented various machines,
techniques, etc. which could fulfil the guest’s needs. With this, global hospitality industry
is prospering and growing rapidly.
Legal: Growth of the hospitality industry is dependent upon the legal environment. The
major law which every hotel needs to follow is minimum age law which describes that
guests should be of the particular age for booking as well as to stay within the hotel.
Apart from that, discriminatory practices should also be eliminated in order to enhance
the opportunities for attaining the goals and the objectives.
Environmental: Environmental factors include weather conditions and emergency
situations which have huge impact over the hotel industries. Situations such as flood,
tsunami, wars, heavy rains, etc. are included in the emergency and natural calamity
factors. These should be tackled very well for enhancing the image of the hospitality
industry (Appendix 1).
2.2 Micro Analysis (Porter’s Five Forces)
Threat of new Entrants: Every organization and the industry get affected with the entry
of every new entry of firm. In terms of global hotel sector, threat of new entry leads to
inventions in terms of producing unique and advanced services to guests. This leads to
competition as well as the overall hotel market sector in the overseas market moves
towards the advancement level (Dobbs, 2014).
Threat of substitutes: Hotels are known for delivering services like entertainment, food
and accommodations. There is no substitute as a whole while for entertainment services,
substitutes such as bars, pubs and discos are available while substitutes for food facilities
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International Marketing 7
are restaurants, cafes, etc. And for the services of accommodations, relatives’ and friend’s
places exists. IN today’s environment, majorly audience wish to avail the number of
services under one roof. Thus, there are no such substitutes are available for hotel sector
(Sutherland, 2014).
Bargaining power of suppliers: Number of suppliers are involved in functionalities of
hotel industry, hence; they play crucial role in terms of enhancing as well as in declining
the performance of any firm of the industry. For prevention against this factor, every
organization in the global hotel market needs to fix their suppliers and they should be
dependent to strengthen the relationship with the suppliers and this will increase the
chances for the hotel industry to grow and prosper.
Bargaining power of buyers: Customers are the primary part of the hotel industry’s
success because they are only responsible for the success and the failure because they
consume the services offered by the hotels. They have great power because number of
hotels has rapidly increased and in order to attract the customers, hotels needs to adopt
unique and advanced strategies in order to fulfil the guests’ needs.
Industry Rivalry: Global hotel industry involves huge and aggressive competition and
in order to attain objectives such as growth and expansion, competition is necessary.
Hence, organization needs to adopt appropriate strategies in order to gain competitive
advantage (Appendix 1).
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International Marketing 8
3.0 Internal and External Business Environment
3.1 Internal Business Environment of Malmaison Hotel (Value Chain Framework)
Value chain analysis is the evaluation of the value of products and services availed and
consumed by customers against their payments. Following are the components of the value chain
framework which will evaluate the conditions of the internal business environment:
Service Quality: Malmaison Group of Hotels has adopted the strategies under all the
services rendered within the premises of the hotel are of high qualitative. To ensure
this, feedbacks from the guests are taken on regular basis and any issue found in the
services are resolved on immediate basis. Maintaining quality of products and services
plays crucial role in order to attract the customers as well as to retain the customers
(Tarí, Heras-Saizarbitoria & Dick, 2014).
Customer Satisfaction: Apart from maintaining the quality of the services, Malmaison
group of hotels has concentrated on satisfying customer needs. Malmaison Hotel is
being operated at the international level and due to unique cultures and lifestyles; every
consumer has unique taste and demands. Thus, Malmaison Hotel has implemented the
tailor made arrangements in order to satisfy the consumer’s needs (Routroy & Routroy,
2016).
Staff Quality: Staff quality matters a lot especially in the service sector industry. Hotel
industry is included in the hospitality sector and under this sector; the major demand of
every customer is to be treated well and in an adequate manner. To perform this
function, staff quality is must i.e. educated and the knowledgeable staffs are required
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International Marketing 9
for understating the guest’s needs as well as they should be capable enough to fulfil
them (Molina-Azorín, et. al., 2015).
Brand Management: This helps the organization to attract the consumers easily as
well as from the perceptive of the consumers, it assures them the quality of products
and the services they will consume or avail. Apart from this, it also helps the
organization to develop and maintain their separate image in the competitive business
environment.
Supporting Activities are:
Infrastructure: Infrastructure of Malmaison Hotel is attractive enough and this is the
reason they own approximately 13 boutique hotels in UK only. This is the primary factor
through which customer gets attracted in order to avail the services of particular place.
Specialisation: Primary specialisation of Malmaison Hotels is to fulfil the consumer’s
demands on the priority basis. Though, this includes in the supporting activities but it has
huge weightage in terms of enhancing the goodwill of the hotel in the competitive
hospitality sector.
Human Resource Management: Malmaison has adopted and implemented the policies
which are relevant from the perception of methods used by the organization for fulfilling
their customers’ needs. In the same manner, people are recruited as well as appointed for
the betterment of the organization.
Marketing Research: This is necessary and it is regularly regulated by the marketing
team of the Malmaison Hotel group for analysing the current trends, tastes and
preferences, etc. of the local as well as international tourism.
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3.2 SWOT Analysis
Strengths
Major strength of Malmaison Hotel is
their infrastructure which provides its
consumer’s a unique experience of
boutique décor.
Quality of service rendered by them is
another crucial strength of Malmaison
Group of Hotels (Helms & Nixon,
2010).
Weaknesses
Involvement of huge cost for
maintaining the image of the
organization in the market.
Less effective targeting strategies for
attracting local residents is another
major weakness for Malmaison Hotels.
Huge costs required for maintaining the
unique infrastructure as well as their
promotional and advertisement
strategies is not effective enough to
attract the consumers.
Opportunities
Expansion of high class hotel services
in those areas where standard class
hotel services are not available yet.
People mainly want to travel the
famous places and setting up hotels
near to those famous places leads to
growth of the hospitality sector.
Threats
Rendering qualitative services at
cheaper rates is biggest threat for big
companies of hostel sector such as
Hotel Hilton, Hotel Malmaison, etc.
Alterations and the amendments in the
policies by government authorities
could also leads to shut down of the
hotels.
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International Marketing 11
4.0 Current Marketing practice
In geographical terms, Malmaison Hotel is present in various regions and all those areas quite
famous and easily reachable. With the effect of this, organization has made their effective
goodwill in the hospitality sector. Their primary target market is international tourism and along
with them business travellers as well as leisured experience lovers are their major target
consumers (Sheth, 2011).
Malmaison Group of Hotels has amended their strategies in order to serve the customers as per
the buying behaviour. In terms of business travellers, Malmaison Hotel has arranged to provide
them satisfactory and standardised stay along with all basic amenities. For making their services
more unique and attractive, they have arranged the facility of high speed internet especially for
business travellers to regulate their conferences and meetings in fair manner.
Business travellers are crucial element for the hotel industry because they acquire hotel services
regularly while rest audience does not move frequently. In UK, approximately 50% hotels
concentrate on improving the experience of business travellers while rest are concerned with
providing leisured and economical experience. Malmaison Hotel concentrate on all segments of
the market and this has helps them to attain their desired goals and the objectives in an
appropriate manner. Along with these services, Malmaison hotel has also arranged various types
of services for business travellers, leisure and tourist markets, etc. (Neirotti, Raguseo & Paolucci,
2016).
In addition to this strategy, Malmaison group of hotels concentrates on marketing mix technique
in order to promote their services in the domestic as well as in international market for gaining
competitive advantage.
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5.0 Market Attractiveness
It is a technique used to determine the factors which affect the organization planning for the
expansion of the business in the international market and this framework analyses the factors
present in the external environment of the target market. Following are certain components of
12C framework which will create impact over the performance of the Malmaison in the
international market (Appendix 3).
Market Selection
Malmaison Hotel is a collection of 13 boutique hotels in UK and it is a member of Frasers
Hospitality Group. Frasers Hospitality Group has number of high standard hotels and in this
manner; group has made its presence in most parts of the globe such as Europe, Middle East,
North Asia, and Australia, etc.
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Reviewing the demand and market share of the other hotels of Frasers Hospitality Group,
Malmaison Hotel decided to expand their hotel business in the international market and for the
same, market entry options and the barriers to the entry will be considered for analysing the most
appropriate options for selection of the appropriate market for Malmaison Hotel (Peter &
Donnelly, 2011).
Market Entry Options
There is numerous market entry strategies are available in the market which plays crucial role in
entering into the new market for setting up the business. In terms of Malmaison Hotel’s
expansion in the international market, following market entry options could be chosen:
Licensing: This is a market entry option which includes the procedure under firm needs to
follow all the rules, regulations, policies in terms of setting up the business for the host country.
This helps the organization to reduce the chances for glitches in the functionalities of the
business (Stieler, 2017).
Franchising: This is known as the North American process which is used for expanding the
business in the international market. Under this, expanding firm gives the right to the other
company to perform their trading activities under their name. This is majorly used by the firm
which have adequate reputation in the international market such as McDonald’s and they have
various franchised stores across the globe.
Partnering and Joint Venture: These market entry options provide the option to the
Malmaison Hotel to come into a contract with the reputed company of the particular country to
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International Marketing 14
perform their business functionalities. This reduces the risk factor and chances for attaining goals
and the objectives could be enhanced (Han & Hyun, 2017).
Barriers to market entry
Barriers to entry for newcomers are huge start-up cost, aggressive competitive environment
developed by existing firms, monopolistic market conditions, etc. While Malmaison Hotel may
face aggressive competition, special tax benefits to existing and local companies, strong brand
image of the existing companies, high bargaining power with consumers, etc. Apart from this,
there no such crucial factors are left which could act as the barrier to enter into the international
markets (Wijaya, 2014).
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International Marketing 15
6.0 Ansoff Matrix Framework
This framework was invented to generate the growth opportunities for the organization in the
international market. It has four growth alternatives which includes components such as target
market, segmentation, positioning strategies through which appropriate market could be selected
for attaining the goals of the organization (Appendix 4).
Market Development Diversification
Market Penetration Product Development
7.0 Marketing Mix Technique
Price: It is the first component of marketing mix technique and they set up their prices
considering the internal as well as external business factors such as marketing objectives,
customer demand, etc.
With the help of effective pricing strategy, Malmaison Group of Hotels can easily develop their
unique presence in the target market (Fischer, et. al., 2011).
Product: The second crucial element of marketing mix technique is product and Malmaison
hotel is known for rendering high quality and standardised services. They need to develop and
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International Marketing 16
adopt certain strategies to maintain the same level of quality for retaining as well as to attract the
consumers.
It has been recommended to the Malmaison Hotel that making arrangement of services as per the
consumer’s requirements will help them to develop positive image in the local public’s mind-
sets.
Promotion: Malmaison Hotel could adopt advanced and latest strategies for promoting their
hotel in the target market. With the help of this, organization would be able to set up their
effective position in the global hotel sector as well as in the target market’s hotel sector (Huang
& Sarigöllü, 2014).
Mixture of print medium and the digital medium strategies could also be included in the market
plan in order to attain the quick results (Leung, Bai & Stahura, 2015).
Place: In terms of setting effective position as well to gain competitive advantage in the target
market, organization could opt for the centralised locations. This will attract the consumers
because centralised locations of the place will be easy to reach and approach (Khalili, et. al.,
2014).
Place of distribution of the services should be unique and attractive and in order to implement
this in the target market, organization needs to make their infrastructure more unique and
attractive along with setting up their hotels at the centralised and easy to locate locations.
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International Marketing 17
8.0 Evaluation of Risk factors
Risk factors impose the negative impact over the performance of the business and in terms of the
hospitality sector; risk factors could lead to the shutdown of the business as well. Following are
major risks faced by hospitality sector:
Data privacy: It has been noticed that hotels nowadays are collecting lot of information from its
guests in order to insure themselves from any kind of damage. Information shared by the guests
could be easily misused and leakage of the guest’s confidential information could lead the
organization towards the negative aspect.
Staff: In the recession times, various hotel brands executed retrenchment strategies under which
various employees lost their jobs. But in the normal conditions, opportunities rise for both parties
i.e. for employees as well as for hotels. This is the major reason for high labour turnover rate in
hotel sector.
Apart from these, there is numerous risk factors are available for hotel sector which needs to be
considered by the Malmaison Hotel before entering into the target market.
Management of risk
Cost Effectiveness: This is the strategy through which outcomes could be evaluated on the basis
of external factors and costs incurred as investment. Apart from this, it is a part of economic
analysis which helps the organization to reduce the risk factors relevant with the finance.
Innovations: This is the best alternative for reducing the impact of the risk factors. Risks are the
reasons for innovations. With the help of appropriate innovation, organization could easily
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International Marketing 18
overcome from the negative aspects and the performance of the organization could be turned
towards the positive side to attain the goals and the objectives for the organization
(Dzhandzhugazova, et. al., 2015).
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International Marketing 19
Conclusion and Recommendations
From the aforesaid information, it can be concluded that Malmaison Hotels have great impact
over the global hospitality sector with its unique boutique hotel designs. It has been
recommended to the Malmaison Hotel group to review the external environmental factors for
analysing the appropriate outcomes. International marketing plan and its components have been
discussed under this report in order to introduce the boutique design hotel theme in the
international market with the view to enhance their market share. Apart from this, risk
management and the market entry options should be reviewed before implementing at the
workplace in order to overcome from the negative situations for the organization.
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International Marketing 20
References
Aggett, M., 2007. What has influenced growth in the UK's boutique hotel sector?. International
Journal of Contemporary Hospitality Management, 19(2), pp.169-177.
Boella, M. and Goss-Turner, S., 2013. Human resource management in the hospitality industry:
A guide to best practice. Routledge.
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Cornelissen, J., & Cornelissen, J. P. 2017, Corporate communication: A guide to theory and
practice, Sage.
Dobbs, E., M., 2014. Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review, 24(1), pp.32-45.
Dzhandzhugazova, E.A., Zaitseva, N.A., Larionova, A.A., Petrovskaya, M.V. and Chaplyuk,
V.Z., 2015. Methodological aspects of strategic management of financial risks during
construction of hotel business objects. Asian Social Science, 11(20), p.229.
Fischer, M., Albers, S., Wagner, N., & Frie, M. 2011, Practice prize winner—dynamic marketing
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International Marketing 21
Han, H. and Hyun, S.S., 2017. Impact of hotel-restaurant image and quality of physical-
environment, service, and food on satisfaction and intention. International Journal of Hospitality
Management, 63, pp.82-92.
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location on profitability in the Spanish hotel sector. Tourism Management, 52, pp.405-415.
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International Marketing 22
Malmaison, 2017, Boutique theme hotel, Assessed on 23rd November 2017,
https://www.malmaison.com/.
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International Marketing 23
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Appendices
1. Situational Analysis:
Macro Analysis (PESTLE)
Political Rules and regulations in consideration
with the target market must be followed
by the Malmaison Hotel.
Political strategies such as market entry
options, laws, tax policies, etc. must be
considered before making its own
policies for executing its
functionalities.
Hotel sector is the biggest source of
income for the government in the form
of international tourisms, hence; guests
should be provided with exclusive
services with the view to retain them.
Economic Organization needs to utilise its
resources in fair manner to save them
for the recession and other annoying
situations.
Target market’s economic policies must
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International Marketing 25
be considered in order to provide
appropriate and useful services to
guests.
Social Fulfilment of the gusset’s unique
demand
Technological With the help of advanced technologies
and strategies, organization will be able
to enhance their productivity as well as
customer satisfaction.
Legal Laws such as minimum age required to
stay at hotel, etc. should be followed
for smooth working of the organization
in the target market.
Environmental Malmaison hotel should barrage all the
safety measures for dealing with natural
and disastrous situations.
Micro Analysis (Porter’s Five Forces)
Threat of new entrants As Malmaison Hotel is planning to
launch their business in international
market conditions, threat for new
entrant carries minimum weightage.
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International Marketing 26
Threat of substitutes As such there are no hotels which have
planned to introduce boutique design
hotels. Thus, it can play crucial act in
the successful expansion.
Bargaining power of buyers As consumers have huge choices to
select the best hotel for them as per
their requirements but for Hotel
Malmaison, there are no such
alternatives exists.
Bargaining power of suppliers In the new target market, appropriate
strategies needs to be adopted in order
to develop relationship with the
suppliers which will help the
organization to attain its desired goals
and the objectives.
Industry Rivalry Major competitors for Malmaison hotel
will be Hotel Hilton, Marriot
International, Starwood Hotels &
Resorts, etc. Their presence can be
found in almost every part of the globe,
thus, they are big competitors for
Malmaison Group of hotels in terms of
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International Marketing 27
expansion.
2. 12C Framework
Country: In UK, Malmaison hotels have thirteen boutique hotels which are proved as the
most favourable factors for the organization to attain the success.
Currency: Currency of UK is Pond and exchange rate of British Pound is equals to 1.33
US Dollar. Current inflation rate of UK is 2.9%
Culture: People in UK prefer to spend on leisured experience and Malmaison Hotel has
adopted this strategy in order to enhance their leisured experience. Apart from this, their
boutique hotels also fulfil the demand of the UK people as per their cultural factors
(Zervas, Proserpio & Byers, 2014).
Control: Malmaison Hotel has adopted effective controlling measures through which
appropriate results could be oriented and the functionalities of the organization could be
managed as per the standards and the policies set up by the organizational management.
Concentration: This is the factor which describes the organizational process of
concentrating on rendering qualitative services in order to fulfil their requirements as well
as to enhance the customer satisfaction rate. This will enhance the customer base for the
organization which will impact on the overall performance of the organization.
Commitment: Malmaison Hotel’s primary objective is to fulfil the customer’s
requirements in an effective manner. This is the commitment made by the hotel
management to its clients and guests. This commitment has been improved through
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International Marketing 28
adaptation of several unique and advanced strategies for improving the class of the
services (Singal, 2015).
Communication: This is the medium through which Malmaison Hotel’s management
communicate with its customers and the employees. Both are crucial element for the
organizational success, hence; advanced strategies have been adopted by the management
to make the communication channel strong and effective.
Choices: Organization has diversified their products and services in order to provide
choice option to its customers. Services such as accommodation, food, entertainment, cab
facility, etc. is provided and along with these services indoor and outdoor games, spa,
beauty clinic, gym, etc. facilities have also been started in order to retain the clients.
Channel: Malmaison Group of Hotels have adopted the innovative strategies for
improving the effectiveness of their communication channels in order to enhance the
demand of their hotels in the target market (Riasi & Pourmiri, 2015).
Contractual: The legal and the regulatory frameworks of UK are compatible with the
organizational policies. With this, Malmaison hotel does not need to amend or modify
their rules and policies’ books for meeting up with the requirements of the UK
government.
Capacity to pay: Malmaison hotel has made their facilities for all types of people on the
basis of their income and according to their capacity to spend.
Caveats: Major caveats present in the international hospitality sector is strong
competition and the involvement of the major hotel brands in terms of rendering
exclusive services.
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International Marketing 29
3. Ansoff Matrix Framework
Market Development is the process use for launching the new product or business in the new
market for attaining objectives of growth. This is done with the help of adding new features or
explaining the advantages of the product. For Malmaison Hotels, their target market will be
people loved to experience leisured stay and business travellers. As per the buying behaviour of
the people, Malmaison hotels have decided to target their existing consumers through improving
their standards of services. In terms of geographical segmentation, target market for Malmaison
Hotels is business travellers and leisure travellers. While considering the demographic
segmentation, target market for Malmaison hotel is all age group of people because they have
adopted the strategies under which various types of services are arranged for fulfilment of their
needs and requirements. While on the basis of behavioural and psychographic segmentation,
target audience for Malmaison Hotel is people notice benefits from the sought of the products
and services, consumption of hotel services by consumers, etc. and the people who consume or
buy products and services on the basis of their lifestyle and personality (Harrington, et. al.,
2014).
Diversification step of framework defines the process of managing the risks involved in the
expansion of the business process. Malmaison Hotel is known for their unique design boutique
hotels. On the basis of this, organization could easily set up its place in the target market without
facing many barriers such as competition. Idea of launching the boutique hotels in the
international market will help the organization to attain its goals and the objectives. With the
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International Marketing 30
help of this, organization will be able to develop their effective and unique image in the
international hospitality market (Gregor & Hevner, 2013).
Market penetration strategy could also be implemented in terms of targeting the new market
audience. Under this, Malmaison Hotel needs to develop or adopt an innovative strategy for
introducing or launching their hotels in an effective manner in the target market. In addition to
their strategy, they could also use pricing strategy and the promotional strategies. This will help
the organization to enhance the demand of their hotels in the target market and with this, chances
for acquiring the goals and the objectives will be increased for Malmaison group of hotels (Lado-
Sestayo, et. al., 2016).
Product development generally used for the products and with the help of this strategy, existing
products are promoted and advertised in the target market with the purpose of enhancing the
demand through modifying the packaging the product. In terms of Malmaison Hotel, they could
use this strategy for moulding their services as per the guest’s requirements basis.
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