3042MKT - Airbnb's Global Marketing in Tokyo 2020: Case Study Analysis

This case study analyzes Airbnb's global marketing strategy as it expands into Japan for the Tokyo 2020 Olympics. It discusses the challenges Airbnb faces, including government regulations, competition, and branding issues. The analysis explores the potential of partnering with the Japanese government, the implications of collaborating with competitors, and effective branding strategies for the Japanese market. It also emphasizes the importance of education and promotion to increase listings and awareness. The report recommends strategies such as adapting branding to include local elements, focusing on unique selling points to overcome competition, and proactively engaging with the Japanese government to address regulatory hurdles. Ultimately, the report aims to provide insights and recommendations for Airbnb to succeed in the Japanese market by understanding local culture and tailoring its global strategy accordingly. Desklib provides a platform for students to access similar case studies and solved assignments.

Student Name: ………..
Student Number: ………….
TUTOR NAME: ANGELA BOWLES OR SAMANTHIKA GALLAGE
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- MARKETING GLOBALLY -
3042MKT -
FINAL CASE STUDY -
AIR BNB GOING FOR GOLD
TOKYO 2020

Executive Summary
Global marketing is a trending phenomenon that most organizations are
adapting to. It entails various mechanisms developed by organizations to help them
operate beyond the geographical borders of the countries they are located. Most of
the organizations are adjusting their strategies in order to get to understand and get
used to conditions practiced in other countries. This is in the form of production,
marketing, operations and many more factors. Organizations that operate at global
level such as the Airbnb with its headquarter in San Francisco enjoy a number of
benefits such as; creation of brand awareness across the world, earning more
revenue and others. On the other hand, there are also a number of challenges that
may be obtained. These challenges include; taking risks as much may not be known,
difference in culture that might inhibit entry, difference in laws and differences in
standards.
In a broader manner, the challenges that are received by the Airbnb Company
can be categorized into external and internal factors. The external factors entail
things like the regulation by the foreign governments, external environments,
competitors and many more. Partnering with the Japanese government is a move
that could have helped the Airbnb Company to be at a better position of conducting
business in Japan. The Airbnb Company is facing competition from other well-
established companies and in order to do well in business, they do not have to
partner with their competitors. They should just remain unique so as to capture the
attention of customers in their own way.
Some of these challenges can be managed by having a good strategic plan
before venturing into a foreign market. The plans should take the domestic behavior
into considerations as well as the culture and laws. There are two common
strategies that companies adopt while venturing the global market space. This
includes; establishment of a strong brand and marketing as if you never had a brand.
Including what the local people are familiar with in the brand will work great. In order
to well in foreign market, it is recommended that a company considers local people
in terms of employment and use of environment as well. Creation of awareness is
vital and the Airbnb Company can educate the Japanese through social media,
advertisements and public shows or workshops.
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Contents
1.0 Introduction.............................................................................................................3
2.0 Discussion: Case Analysis.....................................................................................3
2.1 – Q1: External Environment: Opportunity to Partner with Government to
Regulate....................................................................................................................4
2.2 – Q2: Competitors: Opportunity to Partner with Competition.............................5
2.3 – Q3: Branding: Branding Across Boarders in Japan........................................6
2.4 – Q4: Education and Promotion: Promoting Services to Increase Listings.......7
3.0 Recommendations and Conclusion........................................................................7
3.1 Overview of Recommendations Summarised from Analysis..............................7
3.2 Conclusion...........................................................................................................9
References.................................................................................................................10
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1.0 Introduction
Global marketing is known as the procedure under which market strategies are
adjusted in an organization or company so that the company can adopt or get used to the
conditions practiced in other countries (Gillespie, et al. 2015). Companies and
organizations sometimes line themselves with international standards so that they can fit in
the market space globally. It is more than selling and buying of goods across the world as
it concentrates on different processes of planning and then creating the desirable product,
then positioning the company at the global perspective and finally getting to promote the
products and services on a global market space. A number of challenges are likely to be
received by companies that venture into foreign markets just like we see with the Airbnb
Company in Japan. Some major challenges facing them are difference in culture,
regulations and creation of public awareness. The best way that big companies handle
global marketing is by having their offices in different countries across the world, with
this, they understand the market space and the specific needs their customers need. This is
more like having your people in the grassroots where they can relate to the problems and
challenges faced in this areas, and the mother company comes up with a remedy for the
problems (McCorkle, et al. 2017). This report comprehensively analyzes various aspects
of global market as well a number of factors that the Airbnb Company should do in order
to be successful in Japan. As given in the case study, the Airbnb Company with its
headquarters located in San Francisco in the US is working tirelessly to ensure that they
venture into global market in Japan.
2.0 Discussion: Case Analysis
2.1 – Q1: External Environment: Opportunity to Partner with Government to
Regulate
Question; should Auirbnd partner with government to be regulated?
In the case study given, the Airbnb Company is facing quite a lot of
challenges to fit into the Japanese market. The biggest challenge that they are facing
is regulations from the government of Japan. The best thing that the Airbnb
Company should do to is to partner with the Japan government and agree on
regulations that are present and apply in Japan. This will help them operate smoothly
without much rebellion.
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There are different advantages to practicing global marketing, with the
exception that one does it right. When one enjoys the fruits of global marketing, they
are likely to have improved their product and services. This is brought about by the
growth that the company or organization experience while in business (Pucciarelli, et
al. 2016). The customer’s needs shift and eventually the company’s product shift
with them. Overall, the product is always fulfilling and satisfactory, and that’s why the
company moves to make it. Therefore, they should keep in mind the government
regulations so that everything runs smooth.
In a general term, companies that move globally expands their market and
they can tap customer pool that exists on different places across the world. There
have been cases of products that did well in foreign countries other than where the
first company was started. With the example of Coca-Cola, they make tremendous
profits year in, and year out, most of their sales come from other countries other than
the mother company (Pucciarelli, et al. 2016). The urge to sell products to their
countries brings about exposure, and one might come up with another company in
the middle of global marketing. Another advantage is that one gains a substantial
competitive advantage. Other than competing on the same market space and region,
global market paves the way for entrepreneurs to work across different countries.
The companies that expand and venture in global marketing fist eventually become
competitive and more sought for.
Opportunities
Another advantage of global marketing includes involving customers on your
progress and brand awareness across the world. By engaging yourself in global
marketing, one can spread the word about their company out there, their brand is
also exposed to the rest of the world and this by itself is marketing promotion of a
company (Taylor, et al. 2015). Companies that dare venture in global marketing sell
their names easily through the use of logos and the service that they provide, ones
that venture in technology also can be noticed on the internet with random surfers.
With global marketing one also experiences reduced costs while they improve their
savings (West, et al. 2014). When one leverages the internet, they can sell many
items and use less fee for transportation of various goods. An example is when
clients buy cars, even at an international level; the customer has to pay shipping fees
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and transportation fee. In case many customers buy different cars, the cost to
transport ends up to be cheap. Global marketing also encourages globalization as
different products can be found almost at all places across the world, it becomes
more comfortable and convenient for the customers since they don’t struggle to get
your products (Taylor, et al. 2015). This also cuts on time wastage, in that, if one
gets to a global perspective they can have offices in towns where they are most
needed, or a central place and customers will not have to wait for long to get the
product. An example is if the Apple products would only be sold in America when
everyone across the world would have to wait for days and months for the delivery to
arrive (Babin, et al. 2015).
2.2 – Q2: Competitors: Opportunity to Partner with Competition
Question 2; should Airbnb partner with its competitors?
In the case study given, the Airbnb is also facing competition from other
established companies that are also eyeing to make the best out of the coming
Olympic Games in Tokyo Japan in 2020. In order to emerge successful, the Airbnb
Company should not partner with competitors. They should just maintain their unique
operations that have made them be successful in other cities such as Paris, Madrid
and many more. It is the uniqueness that makes one to prosper in business and not
being like any other competitors by doing exactly what they do and how they do it.
Anything that has advantages also has challenges, and global marketing, in this case,
has different challenges. First, sometimes it’s difficult to establish if there is an available
market out there (Segal, et al. 2015). It is always a risk to put your business out in the
marketplace, and it's even worse to create a world fan base. An example is establishing a
global marketing strategy for a shoe company; this is challenging since shoes are almost
everywhere, and people can access them at any time, this makes it hard for a company to
establish specifically where the customers might be interested in their products. There is
always a significant risk associated with global marketing (Martin, et al. 2016). This includes
a chance to fail in capturing the attention of the customer, failure to satisfy the customer's
needs or even facing criticism. The cost to explore market outside in the globe is always
expensive, and many unprepared companies become bankrupt within the first year of their
business time. When one ventures in a global market space, they now follow different
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regulations and standards that have been set by regulatory organizations, and this becomes
hard to control what specific companies want, and this affects different companies’ strategies
and product and services. Some regulations end up being strict on particular companies
experience severe punishment which eventually leads to the downfall of the companies
(Alon, et al. 2016).
2.3 – Q3: Branding: Branding Across Boarders in Japan
Question 3; how should Airbnb brand itself?
There are two common strategies that companies adopt while venturing the global
market space. This includes; establishment of a strong brand and marketing as if you never
had a brand (De Mooij, 2018). Establishing a strong brand includes associating yourself with
a specific product and service and making sure that the society can associate the product with
you. Organizations have a high duty when they establish a strong brand and this may exactly
be what the Airbnb Company is missing in Japan. Brand creation incorporates media and
digital platforms to elaborate to your audience your identity and how they align with your
business goals (De Mooij, 2018).
The Airbnb Company should maintain its name in Japan but their branding should
entail some symbols of Japanese letters and not English in everything. For instance, their logo
should contain some few Japanese words or symbol. This will make them more appealing to
their customers in Japan and always remain in their mind. Once customers see the
resemblance, then the brand officially becomes associated with you. Identifying different
channels that will make your products to be seen and tested by customers becomes the
highest priority in this particular strategy.
Global marketing requires campaigns so that businesses fit and sustain the pressure.
Some of the concepts to developing a good campaign include knowing your market, when the
company extends their services at a global level then their primary consideration is to
understand their market space and through this, they can capture different behaviors that
customers portray and make their products appropriate to the place (Lee, et al. 2015).
Research about the market to penetrate and how they react to the strategies used brings along
leverage to the new market. Creating a marketing plan is also essential and essential since its
key to successful global marketing. The consistency contributes this; in understanding and
satisfaction of the local business and one needs to customize the efforts and use them on the
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international market. Identifying the objectives and the goals of a company helps in
developing a clear and stable campaign which covers the approaches to be taken. Tailoring an
appropriate strategy is also essential as it helps distinguish what works for the local customers
might not suit the international market and so transitioning becomes a challenge. This should
be included in a campaign so that the company establishes reasonable grounds for the
preferences of the customers in specific places (Zou, et al. 2002).
2.4 – Q4: Education and Promotion: Promoting Services to Increase Listings
Question 4; how can Airbnb educate the Japanese about its services and increase
its listings?
Education of people in foreign markets about the new services or products
that can be offered to them is another vital factor that can be recommended.
Education makes people to know more about an organization and the services they
offer. The Airbnb Company can educate the Japanese in various ways about the
services they offer. The first is through advertisements on televisions, radio and
newspapers where the Japanese can be educated about all services offered by
Airbnb. The Airbnb can also consider organizing public shows and workshops to
educate more about their services in Japan. When more citizens in Japan get
educated about the services offered by Airbnb then it more demand may be created
leading to an increase in listings.
3.0 Recommendations and Conclusion
3.1 Overview of Recommendations Summarised from Analysis
There are different things that organizations and companies seeking to advance to the
global market should consider so that they don’t make mistakes. Mistakes are inevitable but
apparent errors can lead to the downfall of a company, and this could be avoided. Airbnb
should learn from the mistakes made by others so that they improve themselves and overall
global marketing. One of the things they have to consider is the non-specification of different
countries; this is not classifying specific target countries but rather regions. An example is
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planning to expand your business to Asia, various places in Asia have different customer
patterns, and this should be considered.
Assumptions should not encouraged by the Airbnb Company since different regions in
Europe have different taste. Many companies think that they can do whatever brought them
success in the first place and when they extend to other countries they fail miserably (Babin,
et al. 2015). This is because there is a lack of adopted channels for sales and marketing which
exist in the region they want to explore. Airbnb should consider identifying channels that
different countries have taken over years and carefully follow them when channeling their
services. An example is how different people have reacted to various social media (Linton &
Solomon, 2017).
Airbnb Company should consider the employees that they have on the branches
or businesses owned on foreign lands. Many companies make the mistake of not
employing the locals have a hard time communicating with the local people and even
understanding the internal problems. Local citizens guarantee fast and relevant
information, and also they act as the link between the company and the locals
(Spivack & Mckelvie, 2018). In case anything arises, they are aware and can advise
the cautions to make or routes to follow to capture the attention of customers (Lee, et
al. 2015). They also guarantee customers since they have family and friends around
that area and understanding the global logistics also play a part to help a company
or organization not to fail. The logistics include understanding how different currency
works and have an explicit calculation to determine how much the product and
services will cost. Understanding the time zones also is important and knowing the
right and appropriate times to send texts and email addresses. Airbnb should also
put into consideration how they offer different products (Bettinelli, et al., 2017). The
way companies launch their products in their domestic company should not be the
same at the international level, in case the customers are not aware and clear on the
features of the product then they have nothing to anticipate for. Companies should
consider offering specific traits of their products individually. This is essential to any
organization or company, and if they consider this, they avoid silly mistakes that
could turn out to be expensive and costly to the company. Companies ought to
consider different things and be careful when implementing a global marketing
strategy and they finally enjoy the fruits of hard work.
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3.2 Conclusion
Global marketing has brought the world closer, and it has improved
globalization and the success of companies from different parts of the world. This
has brought about internationalization and unity in the trade union as products
have been centralized and standardized (Alon, et al. 2016). The favor has been
on large-scale enterprises who have more than 250 employees. The medium-
sized enterprises, however, have not been left behind. Some have tried to venture
into global marketing while small-sized enterprises rarely explore the outside
world (Rezaei & Ortt, 2018). This shows how seriousness and strictness are
required in the process of global marketing; this is a tiresome phase within the
head of boards and decision making leaders since the decisions made might add
up to the downfall of the company (Zou, et al. 2002). There are a number of
opportunities that a company going global may enjoy as expected by the US
based Company Airbnb. These includes increase in revenues and many more.
Regulations are important when a company is venturing into a foreign market. The
Airbnb should consider the regulations and laws applied by the government of
Japan. As a matter of fact, they need to partner with the government to be
regulated so as to avoid issues. Some of the challenges include competition and
difference in cultures. Airbnb should remain unique and not partner with its
competitors so as to emerge successful. Education is an important factor as it
creates awareness of the new services and goods brought in a new market
(Johnson, Madole, & Freeman, 2018). This can be done in various ways such as
through; social media, organized workshops, public shows and many more. With
everything done, the companies can face global marketing with confidence that at
the end they can penetrate the global market and become successful (Gillespie,
et al. 2015).
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