Table of Contents EXECUTIVE SUMMARY.............................................................................................................3 INTRODUCTION...........................................................................................................................4 Overview of the company............................................................................................................4 Triggers that influence the company to move into international markets...................................4 Using global marketing model compare two international markets............................................5 Methods of market entry used by Qbic Hotel to enter Indian market.........................................7 Potential marketing strategies......................................................................................................8 CONCLUSION..............................................................................................................................10 REFERENCES..............................................................................................................................11
EXECUTIVE SUMMARY The term marketing is defined as the actions of the company to sell and promote the products that also involve advertising and market research. It has been found out that there are variousfactorsthat influencescompany to move at internationallevel. Thereis various difference between international market on India and Japan. It has been defined that different types of methods available in market that company can uses to enter into new market. The availability of communication mix as marketing strategies help business to reach at target consumers.
INTRODUCTION Global marketing refers to the method of adjusting marketing strategies of the firm to adapt the conditions of other countries. It helps to promote products or services at international level. The Report is based on Qbic Hotel. It will outline triggers that influence firm to move into globalmarket,marketingentrystrategies,comparisonofinternationalmarkets,potential marketing strategies etc. MAIN BODY Overview of the company. The Report is based on Qbic Hotel. It is situated in London, United Kingdom. It is a 3.5 star hotel with restaurant. It offers the facility of different rooms like double room, standard room, superior double room etc. The hotel is having nearly 171 rooms. The hotel is arranged over 5 floors. It also provides other facilities like self parking, car charging point etc. Triggers that influence the company to move into international markets. There are various factors that influences an organisation to move into international markets. These are as follows - Growth and profitability - One of the major factor that motivates firms to enter into international market is growth and profitability. A lot of firms turn to global markets for growth. Introducing new products in new market helps to increase customer base, sales and revenue. This will also help to improve profitability of the company (Perera, 2017). Economies of scale - Firms enter into new market because it helps to expand the business that helps company to achieve economies of scale. International approaches provide economies of scale while sharing risks and cost between markets. Economies of scale happens when unit cost of the output declines as volume of production increases. Risk diversification - Entering into international market helps firm to diversify the risk. Offering products in various countries help to reduce the exposure of company to political instability, economic instability within the country. It will helps to protect the business from different types of risks. Uniqueness of product or service -
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The product with differentiated features helps business to compete with other companies in foreign market and enjoy massive options throughout worldwide marketplace. Spreading the cost of research and development - Through entering into a new market, firm is able to rapidly cover the cost incurred on research and development. As a result of large marketplace with regard to goods including high expenses related with research and development. It supports speedy recovery of such type of expenses. Resources and ideas - Due to non-availability of resources in home country or at better competitive rate firms turn into global market. Also firms move at international level to gather different ideas in various lifestyle of different countries as well as to broaden the workforce. Resources involves financial resource, material resource, human resource etc (De Mooij, 2019). Employee's - All the businesses requires well trained and skilled employee's. Due to this, companies move into international markets to find alternate sources of labour to perform various functions of the company. Increase market share - Another factor due to which firms proceed at international level is to increase the market share. Mostly organization moves into another country because it helps firm to increase the sale of products. As a result it also assists firm to increase market share. Using global marketing model compare two international markets. Qbic Hotel will use PESTLE analysis to compare two international markets that are India and Japan. PESTLE analysis is one of the major global marketing model that helps organisation to identify, evaluate and monitor various types of factors that are existing in macro environment. Company cannot fully control the impact of these factors. Qbic Hotel will use PESTLE model to compare two international markets. BasisIndiaJapan PoliticalOne of the major factor that may influence the decision of company to enter into market There are various trends due to which political stability of the countryisbetterthanother
of India is political stability. The stability of government in Indiaandpredictablepolicy frameworkhasmadethe country attractive for firms. countries.Itincludessocial equality,commitmentto international affairs etc. EconomicalOne of the factor that affects thedecisionofcompanyto enter into new market is rate of inflation. Therate of inflation in India was 3.43 % in 2018. The rate of inflation in Japan is 0.30 % in 2018. Therefore, it willbecheaperforthe company to offer products and services in Japan. SocialThe population of India in year 2018 was nearly 1.35 billion. Further, the country also offer cheaplabourthatprovides great opportunity to firms to enterintothemarket. Accessibleandaffordable labour has motivated the firms tostarttheiroperationsin India. The population of the country in year 2018 was estimated at 126.5 million. Further, people living in the countrymostlyprefers Japanese firms as compared to international firms. Therefore, it makes difficult for company tostartbusinessinJapan (Asongu,Koomsonand Tchamyou, 2017). TechnologicalItisthethirdmost technologicallyadvanced countryintheworld(De Mooij, 2018). It is the most technologically advanced country in the world. Peoplearewell-knownas learning and creative searching to use modern technologies.
LegalTherearevariouslawsthat governsthebusinessof companies.Toenterinto Indian market, companies are required to follow Companies Act2013,EmployeeState Insurance Act 1948 etc. Company is required to follow variouslawsrelatedwith working time for labour. The countryhasadoptedthe principle of 40 hours per week. EnvironmentalThe country is facing various environmental challenges such aswaterandairpollution, diversionof consumerwaste into rivers etc. Japanisenvironmentally sustainableandresponsible nation. Waste management is one of the major practice that is adopted which is one of the biggest issue in Japan. Japan is under pressure to reduce the environmentalpollutionand waste controls. Methods of market entry used by Qbic Hotel to enter Indian market Licensing- It is considered as sophisticated arrangement where company have rights to use of services and products to another business (Musso and Francioni, 2014). Licensing is one of the methods that can uses by organization to enter into new international market that is India. It is very useful technique or strategy when purchaser of license relatively has large market share in market where they want to enter. Licences will be for production or marketing licensing, in simple words, licensing is kind of business arrangement in which organization give permission to other firm to manufacture their goods for particular payment. In this mode of entry, firms sign contracts with other businesses that called licensees which allow other companies to legally sell products or services to organization Acquiring organizations-
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Business acquisition is one of the best modes company can uses to enter into market, it includes taking over firm that already has market share, which makes it easier for Hotel to find place in market. Speed is essential in this case, since workers will be retrained and replaced swiftly before competitors react. Acquiring managing interest in foreign firm provide company ownerships of business that is established and well known in market. Partnering- It is almost essential when company enter into international or new market, it is required. It takes variety of methods from simple marketing arrangement to sophisticated plan alliance for providing services (Ang, Benischke and Doh, 2015). Partnering is legal form of business function between two or more companies who get ready to share profits and management. It is useful plan in those markets where culture, both social and business, is practically different than company own as local partners bring local market contacts, knowledge and select wisely consumers. When Qbic hotel use this market entry mode, they can continue to permit other firm to operate their management in behalf of main owner, it permits firm to benefits from their experience, knowledge and connections with all stakeholders. Joint ventures- It is one of the most famous modes of market entry in which two organizations combine their businesses and resources to sell its products. Joint ventures allow company with partner experienced into international market, these partnerships will be difficult to handle and needed a splitting of profits. It is specific form of partnership that includes creation of third independently or well managed firm. According to this mode, two companies agree to work together in Indian market, either geographic and create another firm to undertake this. With this method, Qbic hotel will share their profits and risks normally with their new partner equally. Evaluate the best method of entry- Partnership and Joint venture are one of the best options for organization, that they can use to enter into new market like India. It makes easy for Qbic hotel to established and start up their business in new place through other company who had well managed and reputed image within it. It helps to increase productivity and profitability of business rather than before; it also caters opportunity to improve management effectively.
Potential marketing strategies Marketing strategies is all about organization marketing objective and goals combined into one comprehensive plan, it assures greater success of business into new international market. The business executive of company creates effective and successful marketing strategy with the help of conducting market research (Ahmedand et.al., 2014). Marketing department focusing on appropriate and suitable product or communication mix so that they can gain high amount of profit. Communication mixis one of the best marketing strategies, it refers to particular methods uses to promote business products or company to targeted consumers. It is set of five elements that provide benefits to Qbic hotel as when they use it to gain better growth and success in new market. Advertising- It refers to any paid advertisement of services, products or ideas by identified sponsor or company. When hotel enter into new market, they have to attract consumers towards their business which is quite essential for them (Ali, Ilyas and Abdul Rehman, 2016). They can advertise in number of methods such as radio, newspaper, magazines, social media sites and billboards. It is very effective way that firm uses to reach large number of consumers, but it is quite expensive as well. Public relations- It is another element of communication mix; it refers to area of promotion that includes creating good connection with media and building up relations who are interested in business. Public relation come in hand when business trying to defer attention from unfavourable things relating to business. Sales promotion- It refers to short term incentives organization offer related to their services or products. Sales promotion is effective form that Qbic hotel will uses to grab the attention of consumers who will be on fence when it brings to making purchase as it enhances people with discount offers. Personal selling- This element integrated with direct marketing components; organization make uses of sales force that is very essential to consider this element distinctly. Personal selling is where
company use people to sell their products, they select highly trained applicants for this procedure after meeting face to face with consumers. Direct marketing- It includes highly targeted information or messaging that sent to target market or to very narrow consumer (Purcarea, Gheorghe and Gheorghe, 2015). Direct marketing is one of the best communication mix elements that Qbic hotel can use to promote their services in new market. With the help of this strategy business will assure to gain success and growth into international market. CONCLUSION From above, it has been concluded that Qbic hotel operate their business effectively with skilled labour.Growth and profitability, risk diversification, uniqueness of service or products, employees and other triggers influence organization when they move into international market. PESTLE analysis is one of the best global marketing models that uses to compare two global markets and evaluate which one is best for company to enter. Furthermore, Joint venture and partnership is great and suitable method of market entry that company uses to enter into new market. Communication mix elements give benefits to business as they can consumer attention rather than before.
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REFERENCES Books and Journals Ahmed, R and et.al., 2014. The communication mix in pharmaceutical marketing.The Pharma Innovation Journal.3(5). pp.46-53. Ali, M., Ilyas, M. and Abdul Rehman, C., 2016. Impact of consumer centric marketing mix elements on consumer buying behavior: an empirical investigation in context of FMCG industry of Pakistan.Kuwait Chapter of Arabian Journal of Business and Management Review.33(2592). pp.1-13. Ang, S.H., Benischke, M.H. and Doh, J.P., 2015. The interactions of institutions on foreign market entry mode.Strategic Management Journal.36(10). pp.1536-1553. Asongu,S.A.,Koomson,I.andTchamyou,V.S.,2017.Financialglobalisation uncertainty/instability is good for financial development.Research in International Business and Finance,41, pp.280-291. De Mooij, M., 2018.Global marketing and advertising: Understanding cultural paradoxes. SAGE Publications Limited. De Mooij, M., 2019.Consumer behavior and culture: Consequences for global marketing and advertising. SAGE Publications Limited. Gollnhofer, J.F. and Turkina, E., 2015. Cultural distance and entry modes: implications for global expansion strategy.Cross cultural management.22(1). pp.21-41. Musso, F. and Francioni, B., 2014. International strategy for SMEs: Criteria for foreign markets and entry modes selection.Journal of Small Business and Enterprise Development.21(2). pp.301-312. Perera, R., 2017.The PESTLE analysis. Nerdynaut. Pongelli, C., Caroli, M.G. and Cucculelli, M., 2016. Family business going abroad: the effect of familyownershiponforeignmarketentrymodedecisions.SmallBusiness Economics.47(3). pp.787-801. Purcarea, V.L., Gheorghe, I.R. and Gheorghe, C.M., 2015. Uncovering the online marketing mix communication for health care services.Procedia Economics and Finance. 26. pp.1020- 1025. Online WhatIsaMarketingCommunicationMix?2019.Availablethrough:< https://smallbusiness.chron.com/marketing-communication-mix- 63541.html#:~:targetText=The%20communication%20mix%20refers%20to,add%20a %20sixth%20%E2%80%93%20event%20sponsorship.>