International Marketing - Malmaison Hotel

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

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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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Appendices....................................................................................................................................22
1. Situational Analysis:...........................................................................................................22

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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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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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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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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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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).