International Marketing Report: EasyHotel's Expansion Strategies

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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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an international law and continuous fluctuations related to standards of products in some
emerging markets (Easyhotel2019a). It has been also analysed that there is a lack of supply of
innovative products as the organisation has improved some innovative products, which are at
the response towards the improvement of the other experts. On the other hand, it has been
analysed the supply of the emerging products is not seemed to be regular as leading to some
low and high swings in the number of sales over the time period (Easyhotel2019a).
Therefore, the constant profitability has developed the hike in the experts over the past few
years that have put huge pressure on the profitability but also on the entire productivity of
sales. Developing the trends with the isolationism can result in a similar reaction from
different governmental authority and affect international sales. Fluctuation in customer
buying behaviour can be the biggest threat to the physical infrastructure driven model.
Developing in the raw material can be a major threat to the profitability of the EasyHotel
(Easyhotel, 2019a).
PEST analysis
Political factors
Political factors play a vital role in identifying the factors that can further affect the
EasyHotel Plc long-term profitability in a specific market or country. Therefore, EasyHotel
Plc is performing in Travel & leisure in more than a dozen countries as well as exposes itself
to various types of political systems and political environment risks (EasyHotel 2019a).
EasyHotel Plc can further analyse the determined factors before investing or entering in a
specific market.
Economic factors
The macro-environment such as rate of inflation, rate of savings, foreign exchange rate as
well as economic cycle identify the appropriate demand along with aggregate investment in
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the commercial economy (Eriksson et al. 2015). The microenvironment including
competition norms affects the competitive benefits of the organisation. EasyHotel Plc can
further apply the economic factors of the country such as inflation and economic indicators to
forecast the entire growth of the organisation.
Social factors
The culture of society affects the culture of an organisation in the environment. Shared
attitudes and beliefs of the population play a huge role in how the marketers in EasyHotel
will understand the customers of the emerged market and how they design the message of
marketing for Travel & Leisure industry customers (Ramanathan et al. 2016).
Technological factors
Technological factors are disrupting the industries within the board. The transportation
industry is defined as a good case to segment the point. Over the last 4 years, the industries
have been effectively transforming. The organisation need not do any kind of technical
analysis but also speed at which the technology helps in disrupting the industry. Slow speed
will provide the organisation with a small span of time to be more profitable (Tresidder
2015).
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Part 2: (LO2)
Evaluate the key criteria and selection process that the company should use when
considering which international market to enter
Figure 2: Market Selection Process
Source: (Eriksson et al. 2015)
The internationalisation helps the large sector organisations to deal in the international market
with the aim of market expansion. It is important for the large sector businesses to expand
their market in the global market for which they have to set a procedure. Eriksson et al.
(2015) commented that the organisations' plans to deal in the international market are needed
to screen their future market before entering into any new market. The statement has deduced
that for any of large sector company such as Easyhotelis needed to focus on the procedure
before entering into the global market. The procedure to enter in the international market is
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started from setting up of objectives and setting up the parameters. Further, the process is
leading to the preliminary screening that helps to analyse the international market in advance
by the large sector organisation as per the current market situation. The preliminary screening
continued to the shortlisting of markets in the international market as per the demand of the
organisation also as per the future goal of the organisation. The process is continued to the
test marketing and commercial production for finalising the targeted market in the
international sector.
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
Merger & Acquisition: It is the first option for a large sector organisation while deciding to
enter in the new international market. Law (2019) stated that merger and acquisition is an
effective way to go for a fresh start in the new market. The only challenge of this strategy is,
the decision of an associated organisation is needed before merging or acquisition.
Joint venture: The joint venture worked positively for large sector organisations while
dealing in the international market. As per this marketing strategy, the large sector
organisations are getting a readymade market in the international market. The negative factor
of this strategy is to decide the requirement of venture for investing in the new market by
both the parties (Eriksson et al. 2015).
Exporting: The exporting strategy is helpful for organisations to expand the brand name in
the international market at minimal market cost. On the other hand, the drawback of this
strategy is the organisations cannot connect with their targeted customers in the international
market directly (Law2019).
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Licensing and Franchising: Licensing and franchising are the similar market entry strategy
used by the large sector organisation to enter in the host nations. The strategy provides an
opportunity to expand in the foreign market at a minimal cost. The disadvantage is the
chances of government interference are higher in these businesses transactions (Eriksson et
al. 2015). Franchising and licensing are the two main effective modes of international
marketing. Franchising is defined as the individual is allowing the other person to open a
duplicate business in another location. On the other hand, licensing means when an individual
allow some other person who is not related to the business to sell the products (Eriksson et al.
2015). Involving both licensing and franchising the individual will receive an initial fee from
the individual duplicating the business or selling the products.
Strategic alliances and partnerships
Strategic alliances and partnerships are another way to enter into the new market with a local
market. Therefore, a strategic alliance includes a contractual agreement between more than
two parties stipulating that the involved parties will further cooperate to meet the entire
purpose of Easyhotels. Strategic alliances are also proved advantageous for the small
business that makes proper investments to enter any new international market (Eriksson et al.
2015).
The chosen organisation Easyhotelis belonging to the hospitality sector for which merger and
acquisition would be the effective market entry strategy. The reason behind this is only by the
merger and acquisition the chosen organisation can enter in the international market. As per
the suggested market entry strategy, Easyhotelcan increases its market reach, as by this
strategy the organisation can connect with the local small-scale hotels in the host nation.
These small-scale hotels might help Easyhotelto gain market knowledge in the new market
that would help the organisation to gain enough market knowledge of the new international
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market. It is suggesting to the Easyhotelthat if the organisation has decided to enter in the
new international market than the management is needed to set a better relationship with the
government. Easyhotelmight target those markets that are financially not strong to attract a
new range of customers but have a large number of the customer base.
International expansion entre modes
Types of entry Advantages Disadvantages
Exporting Risks are low
Entry a be fast
Lack of control
Lack of knowledge
The negative impact of
transportations
Licensing and franchising Costs are low
Fast-entry
Low amount of risk
Lack of control
The license can be a huge
competitor
Strategic alliances and
partnering
There is a requirement of
shared costs reduce
investment,
Low amount of risks
Viewed as a local entity
Problems related to
integration linked
between the two main
corporate cultures.
Acquisition Entry is fast
Operations are
established
Issues related to
integration
The high amount of cost
Greenfield Venture Acquire knowledge of the High risks because of
unknowns, a huge
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local market.
This venture can be seen
as an insider who hires
local people (Eriksson et
al. 2015).
amount of costs.
Exports, Imports and Joint Venturing are the predefined strategies related to market entry that
an organisation can adopt for entering into any new international market. Rahimi et al. (2017)
commented that for a large sector organisation the biggest challenge is to identify the scope
in the international market. Leung et al. (2018) added to the discussion that the joint venture
is helping an organisation to set a level of communication with the existed market in the host
nation. The statement has deduced that among export, import and joint venture, a joint
venture can be the effective marketing entry strategy for EsayHotel. Tresidder (2015) argued
that a joint venture could be possible in the new market if the local organisations agree to
work with MNC. The statement is highlighting the risk factors as well as challenges
associated with the decision of the joint venture strategy. In the case of easy Hotel, a joint
venture might be the possible factor only if the host nation is looking forward to raising their
economic growth.
Conclusion
From the above report, it has been revealed that International marketing highlights the small
area and international marketing depends on the larger area. Easyhotelhas have been more
established in winning new emerging contracts and establishing the hotels that are directly
owned. Universal competitions influence the company to become more efficient and
innovative in the appliance of the resources.
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Task 2:(LO3)
Introduction
International marketing local Marketing
International marketing is defined as the
application of principles of marketing to satisfy
the wants and needs of different people within
the national borders.
Local marketing is defined as a strategy that
mainly targets the customers by locations such
as a neighbourhood or a city.
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Overview of both international and local markets (P5)
Overview of easyHotel in UK market Overview of easyHotel in UAE market
operates in two segments: franchising
and owned properties
Company has a portfolio of 10 owned
hotels comprising of 1116 room
EasyHotel has a different process of
controlling and planning
The GDP is desired to grow by 2.7% in
the year 2018, up from the 0.7%
registered in the year 2017
EasyHotel plc is headquartered in the United Kingdom. Therefore, the franchising segments
involves hotel operations of the franchises in connection with the licence agreements of the
brand name of the company. In the context of local or domestic marketing in the easyHotel,
the way of performing and planning is easier, because the business communication is done in
one language. Leung et al. (2018) argued that as compared to the local market, the global or
international marketing in easyHotel has a different process of controlling and planning. In
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the circumstance of global marketing in easyHotel, the way of planning and performing is not
so easy, because multiple languages are needs to make business communications.
Investigate how the product, pricing, promotional and distribution approach differs in a
variety of international contexts (P6)
Pricing strategy of the UK market Pricing strategy of the UAE market
EasyHotel uses the penetration strategy
as the target customers mainly search for
a reasonable hotel.
So the pricing keeps fluctuating.
EasyHotel uses the skimming strategy as
the technology and revenue rate of UAE
is high as compared to the UK.
Pricing strategies are mainly designed to
help the business to develop the sales on
new emerging services and products.
EasyHotel uses the penetration strategy as the target customers mainly search for a
reasonable hotel. So the pricing keeps fluctuating. Market penetration is one of the efficient
alternative growth strategies in the Ansoff matrix. Kumar (2016) defined that penetration
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strategy applied by the hotel mostly involves determining on selling the existing services or
products. On the other side, the skimming strategies focus to get some possible profits from
the early adopters to the innovators.
Product strategy in the UK market Product strategy in the UAE market
Product strategy in the UK helps in
enabling the individual to focus on the
target market.
The product involves the entire
combination and features of the goods.
The product and services are mainly
represented according to the database
while describing the features and costs.
The product strategy of easyHotel outlines the main strategic vision for the offerings of the
products by determining where the products are going. This kind of actions focuses when the
products, according to its nature have similar kind of utility for different markets and
customers in easyHotel. The appliance of this strategy is comfortable to implement and is not
very expensive (Dwivedi et al. 2015).
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Promotion strategy in the UK market Promotion strategy in the UAE market
For the promotion strategy, easyHotel uses
different techniques such as following the SEO
staples which can further help the company to
attract more and more customers.
As compared to the UK the promotion strategy
of UAE uses global distributions to attract the
customers.
The UK mainly uses SEO staples as it outlines the basics of marketing as well as ensuring
whether the service is relevant and rich. Global distributions systems (GDS) is defined as a
network that enables automated transactions within the travel service providers. Promotions
like easyHotel involve the entire activities that include interacting with the customers or
buyers about the products and its advantage and futures. The data advertised on different
media channels to the buyers support them in making a purchase decision (Jogaratnam 2017).
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Distribution strategy in the UK market Distribution strategy in the UAE market
EasyHotel provides the services to their
customers directly, where the customers
can directly get connected.
Here, through the online website or the
applications the customers can reach the
hotel directly with their query
EasyHotel provides the services to the
customers indirectly, where the third party is the
mediator between the customers and the hotel.
EasyHotel provides the services to their customers directly, where the customers can directly
get connected. Cabras and Bamforth (2016) defined that through the online website or the
applications the customers can reach the hotel directly with their query. EasyHotel provides
the services to the customers indirectly, where the third party is the mediator between the
customers and the hotel.
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Conclusion
From the above discussion, it has been revealed that the easyHotel of UK mainly focuses on
the penetration strategy and in UAE the easyHotel mainly focuses on skimming strategy as
the technologies and revenues are more advanced in comparison to the UK.
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Task 3: (LO4): Training notes: How to organise and evaluate marketing efforts that
EasyHotel should go ahead with international expansion plans
Title: Approaches of international marketing for EasyHotel
Meeting date: 20-02-2020
Meeting time: 10 am
Venue: Conference room of EasyHotel
Participants: Board of directors, chief marketing officer, chief executive officer, financial
director, marketing director and chief executives of EasyHotel
Meeting agenda:
Detailed analysis of the various international marketing approaches
Planning for international marketing and growth
Actions strategies for future growth
The present meeting would be discussing the different approaches of international marketing,
which the company such as EasyHotel can adopt. The study would be further discussing
different ways to assess the competitors and evaluating the different approaches.
Various international marketing approaches the company can adopt:
In regards to making the expansion of the business, the international marketing strategies and
approaches are used by the business entities. Some of the commonly used approaches for
global market entry as following:
Global Strategy: When a company market their products through the same brand name and
image in different countries, it is called global strategy. One such example is Coca Cola. This
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company has invested and is present in a lot of countries and is operated under the name
Coca-Cola only. For Easy Hotel as well, the company can go with this global strategy method
for international expansion.
Multinational: In international marketing, business entities provide products or service
offering based on their home country. This sometimes becomes a failed approach, as it does
not match with different country tastes. In terms of consumer interests, tastes and preferences,
one country is different from another. (Cabras and Bamforth 2016). Thus, one of the
international marketing strategies includes offering local flavours, fashion and products,
which suits the culture of the host country, where an organisation tries to enter. In the case of
Domino’s Pizza, in most of the Asian country, they use seafood as toppings. However, in
India, the toppings are based on curry (Kelso, 2020). Dunkin Donuts introduces its products
based on local preferences. In the same way, EasyHotel can enter into other countries using
its name, but not with co-ordinated product offerings, but adaptation of the products and
services.
Transnational strategy: In transnational strategy, organisations though have central
corporate facility with foreign operations and presence, provides marketing and decision
making powers to individual foreign market. It increases the overall responsiveness which
helps in overall growth of the company (Cabras and Bamforth 2016). One such example is
Nestle which has different marketing approach in Asian countries and completely different
approach in EU countries.
International strategy: This is one of the best strategy for IT companies where the
companies without having physical presence in other countries dominate the foreign markets
using only exports and imports. One such example is that of Nike which is having its
production facilities in US, but it export products to all other markets.
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Transaction cost strategy: The transactional cost strategy includes cost consideration while
entering into the new international market. Additionally, EasyHotel might require to select an
appropriate entry strategy where the cost of resources and trade-off is considered.
Contingency strategy In the contingency strategy, the business entities make changes in the
overall organisational structure for enhancing its effectiveness to operate and perform in the
international market (Cabras and Bamforth 2016). It is necessary to make changes in the size,
structure and market research to enhance information on customer needs in the international
market.
Evolutionary strategy: In this strategy, the right information is required to move in the right
direction taking right decisions for expanding the business (Rahimi and Gunlu 2016). The
EasyHotel might require creating effective operational management of its business activities
to enhance its capability for performing in the international market.
In the case of EasyHotel, the multinational strategy might be a rightful approach that can help
the organisation to adapt to the changes required in each individual market. It will certainly
help the management of the organisation to understand the culture and nature of business and
trading in the international market. Additionally, the EasyHotel might require considering
decision-making based on the changed requirement and needs of the customers in the global
market.
Competition of home and international orientation and ways to assess competitors,
outlying the implications of each approach
Approaches of domestic marketing Approaches of international marketing
Domestic rules integrated to
marketing practices are taken into
International practices tend to be
vital for incorporation
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consideration
Comparatively need slow official
clearance
Investments associated with
practices of marketing in domestic
platforms whilst it is lees
In domestic marketing, the
commercialisation and marketing of
the products are limited to the home
country only
In domestic marketing, the risk
factor is low
Domestic marketing serves similar
types of customers
Procedure of evaluation of demand
along with time-consuming
associated with expectation of
international customers
Investment is higher in international
marketing
In the international marketing, the
marketing activities are done based
on global audience rather than for a
specific country.
In international marketing, the risk
factor is high
International marketing serves
customers from different tastes and
preference groups
Table 3: Comparison between international and home orientation
Source: (Ramanathan et al.2016)
As per the above table, it has been justified that the approaches in the domestic and
international market is different as per the situation of the market. In the domestic market, the
official clearance is easy to achieve but in the international market, the official clearance
takes time (Ramanathan et al. 2016). In the international market the estimation for getting the
demand from the customers is quite difficult than the domestic market, as in the domestic
market the customers are easy to read. The international practices are quite difficult than the
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domestic marketing practices, as in the domestic market the customers are known to the
practitioners (Rahimi and Gunlu 2016).
Primarily, approaches of 4 kinds exist that are associated with globalisation. They are known
too as ERPG techniques:
Ethnocentric approach:
The approach is commonly considered as the market orientation within parent country. In
case Easyhotel makes use of approach of such kind within international market, the company
would function in a same manner; the way is used to do within domestic marketplace
(Rahimi and Gunlu 2016).
Polycentric approach:
The approach tends to be regarded as market-centric as well as implement the relation with
the company requiring adjustment of marketing mix to achieve requirements of customers of
international marketplace
Regio-centric approach:
Such type of approach exists within transitional phase amidst polycentric as well as
geocentric orientations. As per the views of Rahimi et al. (2017), application of the ttp of
approach by the hotel into business would result in deliberation of regional culture along with
laws by subsidiary to express company’s strategies.
Geo-Centric Approach:
EasyHotel is required to forecast the entire market or the country in form of single market
that is likely to assist in identification of successful promotional mix for overall market. The
issue may be occurred according to the kinds of the various market segments; however, the
positive aspect would be customers’ behavioural approach within the marketplace. (Rahimi et
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al. 2017).
The international and domestic planning includes a different set of activities and planning, In
case of the international marketing, guidelines of international orientation are followed by the
business entities, whereas in the domestic marketing the tactics and strategies are followed as
per local guidelines. The domestic marketing is based on specific needs and requirement of
the customers, whereas the international market is required to meet different categories of
needs and customer preferences. The analysis suggests Easdyhotel might require to include
international orientation for expansion of its business in the global market. When it comes to
competition, the international hospitality industry gives some stiff competition with large
multinational companies operating in the market. The EasyHotel might face prime creation
from the international hotel chains such as Accor Group, Marriott, Intercontinental Hotel
Group, Holton Hotels and Travelodge. These are some of the major marketplaces covers
most of the international market of the hospitality sector.
Future Action plan:
EasyHotel might require to create objectives for introducing its product and services
in the international marketplace
With the application of contingency strategy, the company might require to change its
nature, culture and size of the business for enhancing is operations in the global
market
The management of easy jet than might require to make thorough market research for
gathering information on needs, and requirement of customers in the global market
Based on the information, asyHotel might require to include innovation and
modification in its accommodation and dieting services
The application of entry strategies such as acquisition or franchise might require to
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