International Marketing Report: EasyHotel's Expansion Strategies

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Added on  2020/11/10

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This report provides a comprehensive analysis of EasyHotel's international marketing strategies. It begins with an introduction to international marketing and its key concepts, differentiating it from local marketing. The report then explores the rationale for organizations to market internationally, detailing various market entry routes. It evaluates the opportunities and challenges, including a SWOT analysis for EasyHotel. Furthermore, it examines market selection criteria, market entry strategies, and their advantages and disadvantages. The report also covers how to organize and evaluate marketing efforts, concluding with recommendations for EasyHotel's international expansion plans. The report references various academic sources to support its findings.
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INTERNATIONAL MARKETING
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Table of Contents
Introduction................................................................................................................................3
Task 1.........................................................................................................................................4
Part 1: (LO1):.............................................................................................................................4
Introduction to the organisation:................................................................................................4
Definition of international marketing differentiating with local marketing:.............................5
Analyse the scope of and key concepts of international marketing...........................................5
Explain the rationale for an organisation to want to market internationally and describe the
various routes to market they can adopt.....................................................................................9
Evaluate the opportunities and challenges that marketing internationally presents to an
organization..............................................................................................................................11
Part 2: (LO2)............................................................................................................................15
Evaluate the key criteria and selection process that the company should use when considering
which international market to enter..........................................................................................15
Explain what a market entry strategy is, using examples of the different strategies that are
available to an organisation, and include the advantages and disadvantages of each..............16
Task 2:(LO3)............................................................................................................................20
Task 3: (LO4): Training notes: How to organise and evaluate marketing efforts that
EasyHotel should go ahead with international expansion plans..............................................27
Conclusion................................................................................................................................32
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Introduction
Internationalisation is the concept according to which a large sector organisation is
approaching to enter the international market with the aim of expansion of the business. The
internationalisation has helped various large sector organisations to expand their market in
the international market also to increase the national income of the parent nation as well as
the host nation. In this detailed report, the discussion would be made in the easyHotel, UK.
The discussion would include internationalisation technique in the suggestive format for the
chosen hotel for proposing a plan to enter into the international market.
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Task 1
Part 1: (LO1):
Introduction to the organisation:
Easyhotelis considered as the international super budget hotel chain that is headquartered in
London and highlighted on the Alternative Investment Market of London Stock Exchange.
Easyhoteldevelops, owns, franchises and operates hotels within the super-budget
Easyhotelbrand, advertising its hotel as providing secure, hygienic and protected
accommodation of hotel to the consumers. The organisation was incorporated in the year
2004 and established its first hotel in the year 2005 (Easyhotel2019b). In the year 2019,
easyHotel has mostly twelve exclusive owned hotels, which comprise about 1100 rooms
based in Old Street Manchester, Liverpool, Newcastle, and Ipswich.
According to the report, 2015 and 2016 was a cycling year for Easyhotelwith the progress
gained. Together with the focus on decreasing the costs, developing efficiency and increasing
the returns from the particular investments has provided a crucial increase in the profits. The
main pipeline of the hotel is deemed to be increasing the speed. Having the most experienced
team the company have, through this, the company is in an excellent position to enlarge the
Easyhotelbrand and deliver the returns for the shareholders. Easyhotelhas have been more
established in winning new emerging contracts and establishing the hotels that are directly
owned (Easyhotel2019b). The year 2008 marked expansion of easyHotel’s near Heathrow
and Luton airport as well as in London. Between the year 2010 and 2014, the organisation
continued to enlarge the portfolio with the franchise partnership with the openings in
Germany, Scotland and the Netherlands.
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Figure 1: International and Domestic marketing
(Source:Leung et al.2018)
Definition of international marketing differentiating with local marketing:
The primary aspect of international marketing is further analysed by different experts. In the
viewpoint of Kotler, the international marketing is considered as the operation of the
activities of the business that are primarily improved to plan, enhance the promotional
activities and pricing strategy allowing the direct flow of the services and products of the
company under the national frontiers. Cabras andBamforth (2016) defined that international
marketing has been analysed by American Marketing Association within the arrangement of
performanceof marketing implemented along with the method of conception involved
interacting the delivery service and products to the maximum target buyers of a huge field.
Analyse the scope of and key concepts of international marketing
Domestic (local) Marketing
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International
Marketing
Domestic
Marketing
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Domestic marketing activity links with the functions of marketing employed on a regional
scale. Therefore, these types of strategies of marketing were implemented to provide
consumers of a different small area contained by the local limits of the regions. It provides
and motivates the consumers of an individual country only (Dwivedi et al. 2015). It has been
viewed that Domestic marketing benefit from having the number of privileges such as having
accessibility to operate the data, fewer barriers of communications, detailed knowledge
related to customer demand, taste and preferences, having detailed knowledge about the
trends of the market.
International Marketing
The occurrence of international marketing focuses on the practices of marketing are acquired
to have a focus on the universal market. Eventually, the companies establish the business
within the host country, since gaining the main success, they started their business to some
other level and hence known as the transitional company, where the companies decide to
enter in the competitive market of different regions (Jogaratnam 2017). EasyHotel is an
international owner, operator, franchisor and developer of easyHotel branded hotels.
Therefore, the main strategy of easyHotel is to target the segment of the super-budget of the
hotel industry by serving clean safe and comfortable rooms to its customers. EasyHotel
includes the hotel portfolio that comprises of about 3,620 rooms, of 11 owned hotels along
with the 25-franchised hotel. In this case, of international marketing, it does not any kind of
privileges; no such boundaries are there while focusing on the customers across the whole
world. There is some kind of disadvantages that are linked with the globalisation and
expansions. Some of the socio-cultural differences, fluctuation in foreign exchange of money,
challenges in the language, and differences in buying habits of the consumers, and focusing
on the global price for the individual product.
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Figure 2: Types of marketing
(Source: Jogaratnam 2017)
Primary differences between International marketing as well as Domestic Marketing
The main differences between global marketing as well as national marketing are as follows:
The activities related to promotion, invention, distribution, promotion, customer
satisfaction and selling within an individual’s specific country is defined as domestic
marketing.
Global marketing focuses on the small area, and despite this, international marketing
focuses on the larger area.
In relation to domestic marketing, there is a possibility of less motivation of the
government as measured with international marketing, as due to the organisation has
to analyse with regulations and rules of many countries.
Basis for Comparison Domestic Marketing International marketing
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Types of marketing
Domestic Marketing
Activities of marketing employed on
a regional scale
Provides the services and motivates
the consumers of an individual
country only
International marketing
it does not any kind of privileges
Disadvantages are linked with
the globalisation and expansions
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Concept Domestic marketing is defined
as the marketing that occurs in
the geographical limits of the
regions
Interference of Government The involvement of the
government is less
The involvement of the
government is relatively high
Operating field of business In an individual country More than one region
Consumption of types of
technology
The technology is limited International marketing
focuses on using and sharing
the latest use of technology
Estimation of risk factors The estimation of Domestic
marketing is seemed to below
The estimation of International
marketing is seemed to be
extremely high
Perception of buyers The nature of customers of
domestic marketing is
equivalent.
The nature of the customers of
international marketing
focuses on the variation in the
tastes and preferences of the
customers
Analytical Research Research is needed but not at a
very extreme level
Extensive research of the
market is needed because of
low knowledge related to the
foreign market
Table 1: Difference between Domestic and Global Marketing
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(Source: Easyhotel2019a)
Explain the rationale for an organisation to want to market internationally and describe
the various routes to market they can adopt
International marketing Scope:
The international business develops competition in the domestic competitive markets and
acknowledges new opportunities to some foreign markets. Kumar (2016) defined that
universal competitions motivate companies to become more efficient and innovative in the
appliance of resources. From the perspective of the customers, international business
acknowledges them to a major variety of services and goods.
There are some scopes of International marketing such as:
Exports
Exporting is proved comparable to the perception of the brand as it is being for the region.
Leung et al. (2018) opined that organisation further exports their last products to the universal
markets or on the other franchises where they can even sell their emerging products to the
local places in order to generate the revenues.
Imports
Importing the goods for an emerging brand performs a similar way as it performs for the
entire region. In relation with the process of imports, the businesses purchasing the product
items so that they can sell it again to the capable customers that have been contributed with
an extensive work (Ojo et al. 2015). In the case of the importing, the companies take support
from the import service for improving and creating their own production lines.
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Acquisitions
The acquisition is the transactions where the organisation acquires control of other business
by exchanging and buying the stock for its own. Therefore, the acquisition is known as the
good entry strategy to select when the new strategy is required. Therefore, the acquisition is
also known as a good strategy when the industry is seemed to be consolidating.
Joint Venturing
The joint venture is better known as the combined association of two major brands for an
affordable time. The company when establishes a new firm that performs individually and
focuses on the goals than the manufacturer companies (Rahimi and Gunlu 2016). The
emerging companies including Easyhotelperformance under the banner of division of profits
and losses and venturing brands occur within a certain amount of ratios.
Rational for Easyhotelto consider practising international marketing:
Easyhotela small-scaled company based in the UK, which is popular inside the entire country
for providing huge and exclusive offers in their budget to target their customers. This hotel
industry has involved in international marketing and focusing to enlarge the business for
better productivity. In the viewpoint of Rahimi et al. (2017) an increase in the recognition of
the brand, generation of revenue as well as development in the base of the customers can be
defined as the other rationale for motivating the international marketing. The main mission of
Easyhotelis to make their presence accessible for individuals. The main aim of the company
is to serve a great and convenient place for proper sleep and proper lifestyle at an affordable
rate.
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Evaluate the opportunities and challenges that marketing internationally presents to an
organization
SWOT Analysis:
The main purpose of the SWOT analysis is to determine the strategies that a company can
apply to develop the external opportunitiescounter the threats and develop in to secure the
strength of EasyHotels and highlight on the weaknesses.
SWOT analysis for EasyHotel:
Strengths Weakness
Effective cash flows
Effective performance in emerging
markets
Efficient brand portfolio
Limited with products segments
Inefficiency in analysing the financial
data
Require more emerging investment in
emerging technologies
Opportunities Threats
Emerging customers from the online
channels
Innovative environmental policies
New taxation policy can directly affect
the way of performing the business
Lack of supply of innovative products
The threat of facing international laws
Having strong competition
Table 2: SWOT analysis of easyHotel
(Source: Easyhotel2019a)
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Opportunities:
The governmental authority develops an opportunity for the achievement of products of
Easyhotelby the federal government along with the State. New emerging trends in the
behaviour of the customers can establish the new market for easyHotel. Therefore, it also
serves huge opportunities for the company to generate effective streams as well as convert
into different categories of products. Ramanathan et al. (2016) stated that the initial
competencies of the organisation can be a huge success in different field of products. It has
been viewed that from the past few years the company has put their small investment in the
money into the online platform. Therefore, the investment has also established new emerging
channels for the hotels. It has been assumed that in the next years the company can even
influence the opportunity by understanding its customers effectively and providing their
needs by applying the data analysis.
Tresidder (2015) opined that economic development and the maximising the customer
spending, after a long time of recessions as well as the slow rate of growth in the industry, is
a major opportunity for the hotel to capture emerging customers and develop the share of the
market. The new opportunities will generate different opportunity field for the entire players
in the hospitality industry (Law 2019). It can make huge opportunities for the hotels to make
a proper advantage in emerging technology and achieve the share of the market in the
category of emerging products. Therefore, the new and the emerging policy of the taxations
can crucially affect the way of performing the business and can develop a huge opportunity
for the successful organisation EasyHotels in order to increase the main profitability.
Threats:
Developing strengths of the local distributors can also be a huge threat in some markets as the
competitions are paying effective margins to the distributors. The organisation suffers from
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