International Market Entry Strategies for GB Tourism

Desklib provides solved assignments and past papers to help students succeed.

International Marketing

Executive Summary
Globalization has given birth to many challenges as well as opportunities for MNCs,
resulting in many options for the consumers. The organizations have to make sure
that they offer high-quality products and cost-efficient. As these products cannot be
marketed in the same way across the globe. International marketing means includes
many factors than language like-culture, market saturation, and customer
behaviours. Companies mostly from Europe and the USA have put special attention
to their international marketing– they have designed their branding policy taking into
consideration the different consumers, studying the demographics and the world
markets. This study also focuses on the international and domestic market and its
facility towards GB Tourism by the help of Marketing Mix 4P’s. Accommodation,
pricing is the key for GB Tourism to delivers.
The domestic and foreign orientation of international and domestic market is also
providing. The joint venture, exporting, piggyback, partnering up are the key
marketing approach in GB Tourism. After analysis of the problem it is recommended
to GB Tourism to create the opportunities of job, accommodation to attract the
consumer more compare to their competitors.

Table of Contents
LO1: Demonstrate an understanding of how marketing contributes to business
strategies in an international context....................................................................................5
P1: Analyse the scope and key concepts of international marketing..............................5
P2: Explain the rationale for it to want to market internationally and describe the
various routes to market the organisation can....................................................................6
M1: Evaluate the opportunities and challenges that marketing internationally
presents to your chosen client organisation........................................................................8
D1: Produce a critical evaluation of the international market context, including insight
into how your chosen client organisation should adapt their marketing strategies for
various markets........................................................................................................................9
Understanding the importance of localization.................................................................9
Making partnership with a local company having knowledge of the local market.....9
Global campaign................................................................................................................10
LO2: Evaluation and Definition of Key Success Factors.................................................11
P3: International market selection criteria.........................................................................11
P4: Explain using examples, the market entry strategies and its pros and cons........13
M2: Apply evaluation criteria and possible strategy for the selected organization.....14
LO3: Elements of the marketing plan.................................................................................15
P5: Difference between the local vs global debate..........................................................15
P6: Marketing mix 4P's different approach to the international context........................17
M3: Circumstances in the client-organisation may adopt the global approach...........18
M4: Marketing mix approach of GB Tourism towards the international market..........20
D2: Application of marketing mix 4P's in the international market................................21
LO4:.........................................................................................................................................22
P7: Several international marketing approaches of GB Tourism...................................22
P8: Difference between foreign and domestic orientation with steps of assessing the
competitors.............................................................................................................................23
M5: Competitor analysis and marketing approach of GB tourism.................................24
D3: Recommendation...........................................................................................................24
Conclusion..............................................................................................................................25
References:............................................................................................................................26

Introduction
This study will give us an insight into how marketing can impact business strategies
framed by GB Tourism, a local company in the UK that wants to expand to the
international market. As we know, after the globalization has played a crucial role in
the business internationally, so every business organization which wants to expand
their business internationally, must frame their marketing policies to help their
business strategies. To do so, they must evaluate the scope of marketing in the
international market and as well as the different market routes to choose from to help
their operations. The study will discuss the scope and challenges that lay ahead of
GB Tourism.

LO1: Demonstrate an understanding of how marketing contributes to business
strategies in an international context.
International marketing can be defined as the application of marketing principles in
several countries excluding the host country, managing operations overseas.
International marketing is greatly affected by a company’s marketing strategy in the
local market, (Vellas, 2016) so GB Tourism must begin with a study of marketing
identification, business target and making decisions that are designed for the
international market. As the most business organizations today are aware of the
factors like globalization and the policies like protecting the environment by
producing goods or products that are eco-friendly, so framing a marketing policy for
the international market will take the inclusion of these. Marketing being the most
important business strategies provides a challenge for the management to
understand the trends.
P1: Analyse the scope and key concepts of international marketing
The scope
The major scopes of international marketing for GB Tourism are-
As the company is a big name in the UK in the tourism business, it can-
 Bring neighbouring countries of Europe closer as international marketing
requires people across the world to work together.
 Contribute to global peace and prosperity and broaden the scope of
International Marketing
 Stronger ties of the UK with the other countries of the European Union
 Expand their business into the South-east Asian countries as there are
spaces to improve the tourism business
 Attract more tourists from Asia to the UK
 There are several key factors which will come into play for GB Tourism on the
scope of international marketing. They are:

 World Trade Organization has expanded along with regional free trade areas.
For example, the North American Free Trade Area and the European Union.
 The free market system is being accepted by developing countries in South
America, Asia, and Eastern Europe.
 The impact of technologies like the Internet, mobile phones, and social media
has narrowed the national borders.
 The rules and regulations to manage the resources and globalization for the
future.
P2: Explain the rationale for it to want to market internationally and describe
the various routes to market the organisation can
GB Tourism is a company offering services in the regional sector in the UK, so they
would want to market internationally.
The main reasons for such considerations would be:
 International market offers a wide variety of scope to expand business
 They can earn more revenues
 Global expansions will provide them experiences from different countries and
those experience will help them attract foreign tourists from those countries
 Expect quick growth when signed business contracts with local big names in
other countries
The various routes through which GB Tourism can enter the market:
 Contractual Agreements- in business are signed outside domestic borders, as the
scope of international marketing has greater chances of doing business in the
wider arena. With the market expansion, the consumer base becomes larger and
greater revenues are earned. Companies can have larger growth when they sign
contracts with business partners abroad. (Mathews et. al., 2016)
 Joint venturing- between two brands can be very effective for a market. As the
investments are budgeted in monetary values and time, it is helpful for
companies to begin a joint venture to enhance the scope of international
marketing because it is difficult for the new entrants to get a foothold in foreign
markets.

 Tying up with a local partner-it can help run business operations as well as
provides an insight into the dynamics of the domestic market.

M1: Evaluate the opportunities and challenges that marketing internationally
presents to your chosen client organisation
Opportunities for GB Tourism
While evaluating the opportunities for GB Tourism, we may consider these:
 Opportunity to establish their brand name as a global brand
 Expand business fast as the tourism business in other countries are not as
developed as the UK
 To learn the taste of the local people and thus understanding the consumers
 Finding locals for hiring is easier as in Asian countries there is huge
unemployment
 The Asian countries are cheaper than most of the European or American
countries
 The USA and parts of Europe adventure sports are very popular
Challenges for GB Tourism
Localization
This is one of the challenges that GB Tourism will have to face. As localization is not
merely translating site in the language of the country or region, but it takes things like
social platforms, Social channels and communities vary depending on the country
targeted, so it is vital to know which ones are popular in the chosen area.
Legal issues
legal issues will be key for GB Tourism as they are one of the most important factors
of international marketing. After the GDPR has been introduced in Europe - so if GB
Tourism is looking to open up in any European countries, they must be GDPR
compliant. On the other hand, Canada has different compliance standard than the

US. During the international communications and CRM/Database building for future
contact, it is important to understand the regulations.
Culture
Culture will be a challenge for GB Tourism, as marketing is a dimension of business
administration. Studying marketing helps build a strategy to sell better products or
the services offered. It includes surveys to find and to identify if there is a market for
the products or services. International marketing is establishing strategies when they
are sold in many different countries around the globe. For example, GB Tourism has
to adapt strategies according to the different cultures. (Mooij, 2018)
D1: Produce a critical evaluation of the international market context, including
insight into how your chosen client organisation should adapt their marketing
strategies for various markets
As mentioned in the above study, the chosen client organization, GB Tourism, is a
service provider in the tourism industry in the UK. As they are going to enter
international market from the domestic market in the UK, so they will evidently face
some challenges as well as have some opportunities ahead of them. So, they have
to critically evaluate the factors before getting into international market. They should
adapt marketing strategies for various markets like-
Understanding the importance of localization
As different consumers have different tastes, preferences and interests, so it cannot
be considered universal. They change with country, climate, GDP levels, customs
and ethnicity. So, GB Tourism have to understand which zones are most sought for
in different seasons by the tourists. To do so requires research on different
communities demographically. (Schmid et. al., 2016)
Making partnership with a local company having knowledge of the local
market
A good knowledge of the local market is the key to success and to ensure that GB
Tourism should start a joint venture or go to a tie-up with a local organization which
has been in the same business for quite some time.

Global campaign
Social media is known to be very powerful these days when it comes to global
campaigning. So, GB Tourism must start Social Media Marketing and utilize
Facebook as a medium for sharing news related to global marketing. Marketing on
Twitter or LinkedIn may also be useful. GB Tourism should also try YouTube videos
of conducted tours which can be shared through channels to reach out to larger
audiences. (Crawford et. al., 2017)

LO2: Evaluation and Definition of Key Success Factors
Marketing study
It is vital for GB Tourisms decision making of human beings that make them buy or
not a specific product or service. It is the consumer that makes the decision. It is not
the amount invested, the years of research and development that assure success.
Many entrepreneurs admit that they were lucky and that they offered the right
product or service at the right time and at the right place. On the other hand, there
are stories of bankruptcy done by people who were sure of their success. Whether a
product or service will sell in other countries or not can make a manager very
anxious. Many marketing strategies exist to do it right, strategies to win a market, but
it does not guaranty success.
P3: International market selection criteria
The International Market Selection – IMS criteria is different in the case of small and
medium enterprise also known as SME and large-scale enterprise which can be
categorized as branded corporate names. The entry of SME's into an overseas
market is brought about by more of a sudden change of events or through certain
agents of change. These can be a tender contactor which is overnight awarded,
chamber of commerce, a government agency or through an alliance with a major
form or any one of the large-scale enterprises, major export order etc. The examples
are many (Zeriti & Baltas 2016). It is a market driven decision in which the supplier
firm steps in to fulfil a sudden gap that has come around. There is no careful
planning or preparation that goes behind this entry. In a planned way most the
SME's look at 2 factors which will decide the entry into IMS
Low Physic distance – The perceived gap between cultures, educational and value
systems, political systems, industrial and economic way of working
Low Geographical distance – The actual physical distance between 2 countries.
It has been seen that firms have a tendency to enter countries with greater physic
distance. Mostly the nearest geographical locations are selected because there are a

lot of cultural and living style similarities and thereby it becomes easy to penetrate
the product in these markets (Dimitratos, et al 2016).
(b) Strategic and long-term entry
But this is as far as SME entry is concerned which is event based and not long term.
For a strategic approach which created a long-term presence in the overseas
market, there needs to be careful planning and consideration right from the very
beginning.
The Similarities in the IMS is centred on certain basic factors like having a steady
customer base, viable bottom lines, effective branding, flexible pricing etc (Gunter,
2018).
The differences in IMS are centred on factors like legal constraints, distance barriers,
a different way of living, language and cultural differences etc. Finally, other factors
like geographical distance, special requirements, market accessibility, product
acceptance etc
In the case of GB tourism, it is an international tour operator which provides global
tours to citizens of various countries on affordable packages. Since the company is
mainly into services, there are not product-based criteria like export and import, raw
material availability, government certified approvals in an overseas market, storage
space and similar dependencies. This is a purely services-based company which
capitalizes on the citizens purchasing power to enable them to visit and enjoy
various parts of the world. The only criteria for competition are pricing. There are no
trade restrictions like tariffs which can slow down product-based business (Vellas
2016).