Global Marketing Report: Apex Hotels Expansion in the Spanish Market

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This report provides a comprehensive global marketing analysis for Apex Hotels, a UK-based hotel brand, focusing on its potential expansion into the Spanish market. The report begins with an executive summary and introduction, outlining the brand's current position and the context of globalization, anti-globalization, and Brexit. It then delves into a country profile of Spain, analyzing the market size, key industries, and demographic characteristics. The core of the report centers on a PESTLE analysis, evaluating the political, economic, social, technological, legal, and environmental factors influencing Apex Hotels' prospects in Spain. Specifically, the social factors, including cultural nuances, language barriers, and demographic trends, are examined. The report also assesses the technological landscape and its impact on the hospitality industry. The report concludes with references and offers strategic recommendations for Apex Hotels to successfully navigate the Spanish market and achieve its expansion goals, considering both opportunities and potential challenges. The report emphasizes the importance of adapting marketing strategies to the local context and leveraging technological advancements to enhance competitiveness.
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GLOBAL
MARKETING
REPORT
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EXECUTIVE SUMMARY
The report here is based on the aspects of global marketing systems that emphasises on the
multiple dimensions of the business and performing the business in a respective nation. Along
with that the important elements of external factors and business aspects are discussed in the
report. The project is thus formed with the due consideration of all the essential elements
company, brand, respective country and so on that are needed to be expand the business in other
nation.
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TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
The Brand...............................................................................................................................4
1.3 Globalisation, Anti-Globalisation and Brexit...................................................................5
1.4 Country Profile.................................................................................................................5
1.5 Audit.................................................................................................................................6
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................10
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INTRODUCTION
The ultimate goal of any organisation is to encourage its workings and operations to expand its
business in the global channels of market. The effective planning is the first and foremost step in
steeping in to a new or different country (Czinkota and Ronkainen, 2013). This is the main
purpose behind the report to evaluate and analyse all the important factors of global marketing
for the efficiency in formulating the planning of new expansion. This report is based on Apex
hotels, which is a well renowned hotel brand within UK. The hotel is currently taking steps to
expand the hotel units in Spain. In regards to this the report here is analysed comprising of the
main attributes of the brand, the country where the business is currently taking place. The
discussion of the external environmental factors of Spain is also given. All the opportunities and
threats will be evaluated in this project in respect of establishing the existing business in a very
different and dynamic market.
The Brand
A brand is considered as the value or a tool with that a company is recognised in the market.
Currently the company is a leading hotel among the major organisation within the hospitality
industry. The hotel has a well renowned position within the 4 star accommodation and
hospitality units. The organisation is currently operating the business and providing the services
within United Kingdom. A distinctive strategy to target their most appropriate customer segment
is stipulated. The segmentation is attained through the demographic classification while the
targeting of the preferred segment of the brand is done through implementing the behavioural
targeting pattern. The company has an upcoming goal to expand its business in Spain. Thus the
marketing mix of Apex hotel will certainly help in determining the plan of the action to attain its
goals and objectives. The marketing mix of Apex hotel is derived from the current operation and
performance of the entity in UK. This is as follows :-
Product Place
The company offers the common products and
services range within the hospitality sector. A
limited number of cuisine, food dishes,
accommodation service, inclusive of renting
Organisation has a multiple branches in
England UK and each of them have some
distinctive feature and speciality. This enables
them to the direct interaction of the consumer
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the room and suites with each hotel segment (Hoppner and Griffith,
2015).
Price Promotion
The pricing factor is determined by considering
the cost incurrence and competitive rates of the
other rivals.
Apex Hotels uses a common yet effective tool
for the promotion. The company adapts the
techniques of promotion including billboards,
big sign boards, social media and on other
platforms of digital media.
1.3 Globalisation, Anti-Globalisation and Brexit
The globalisation is referred to as the term of operation the business in more than 1 country.
Globalisation helps an organisation to expand its business to the global level and enhance the
standards of workings as well as to attain the goals and objectives in terms of higher profitability.
While the process of restricting the companies to expand their venture in different countries due
to various reasons is termed as the anti globalisation. In recent years there is a lot of change and
transformation that took place in European and UK based industrial markets due to Brexit
criterion (Christodoulides,Cadogan and Veloutsou, 2015). The exit of UK and its states from the
European Union has influenced the working classes and big industries in respect of restricting
their work and operations and limiting the criteria of extensive business performance throughout
multiple boundaries of the nation.
1.4 Country Profile
Apex hotels have a long chain of hotels throughout the United Kingdom. These hotels are
very well situated in London, Bath, Edinburgh, Glasgow and Dundee. The hotel industry is
currently planning to operate in Spain, precisely in Catalonia. The city is flourished with
effective opportunities for the hospitality industries.
The population of Spain is about 46.75 million that caters to the beliefs and cultures on the
different aspects (Rosson and Ford, 2016). The respective hotel will segment the desired
audience on the demographic criteria. The demographic portfolio of the country will involve elite
classes, classification on the basis of nationality and earning standards of the people. This will
help Apex hotel on to gain the attention of respective ad most effective shares of the market.
Being a hotel it will face a lot of competition from other existing rivals. The principle industries
in Spain and Catalonia are travel and tourism that shares about 11% of the GDP, other major
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industries are agriculture, food and exports & imports. The market size within Spain is wide and
the volume of trade and business that takes place at a usual course of time determines the size.
Thus the size of the market is large and developing in nature.
1.5 Audit
The factors of the PESTLE analysis help a business to evaluate all the aspects of the external
environment. These elements are certainly responsible in the survival and growth of the
organization in the different environment of a particular region. Here the analysis is performed
on the base of social, technological and environmental factors within the confines of Spain. This
will help in determining the plan of expanding the business of Apex Hotels UK in Spain.
Social factors
The social factor is comprised of the culture, beliefs, and ethics that are subsequently leads the
direction of the society towards anything that it finds more effective. These social factors are
helpful for the business in targeting and segmenting the market classes. The social factor does
help to get the most effective outcome from business by encouraging the enterprises to evolve
their operation, process and offerings according to the current social scenario (Bianchi and
Mathews, 2016). It does enhances the competitive level of rivalry in the market as there are
heavy chances of losing the particular customer segment in the market as any new competition
can emerge in the existing market place with more innovative and preferable means of products
and services. These kinds of scenarios involve a large shift of customer share towards the other
rival firm and ultimately that leads to the ineffectiveness of business.
The social factors in Spain are not much different than any other European country but still the
business faces a lot of moderate issues in respect of these elements on the local and regional
level. The overall population of the country is nearly about 46.7 million, which speaks different
languages comprising mainly of Gallego, Euskera, Valencian, Catalan and off course the Spanish
language. The language barriers often disturb the businesses to promote themselves through a
single medium and with a single language. Some other social changes that the Spain is currently
facing are its low rate of the health index of its people and the increasing population of aged
generation and gradual low scale of young people. These factors often lead to misconduct of the
promotional event and less effectiveness of the segmenting, as if any hospitality industry will try
to target the young and earning generation in this country it will certainly feel a low range of the
customer segment. Thus the higher expectation of the company to achieve the goals of attracting
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more and more people towards their hotel would be less impactful. Along with that the large
shares of the market is determined by a range of aged people who are in the segment of between
40 and above The expansion process of Apex Hotel in Spain will definitely face these things as
big challenges in operating the business over there and achieving the desired goals and objectives
(Baker and Saren, 2016). The company can certainly see through a lot of measures to eliminate
the risks of the social factors, like language, multi cultures and obsession of the people with local
brand everywhere including the hospitality industry. The social classes of Spain prefers
reasonable prices over luxury and the gap between rich segment and middle class section is also
wide thus to attain the effective success of the company in its expansion, it can certainly use the
pricing strategy in its offerings to make it more reasonable that will help in to gain the maximum
attention of the common as well as tourist consumers. Thus the organization here can consider all
the external elements of social subsections to plan effectively for the expansion in Spain.
Technological factors
The technological factors are comprised of the latest and continuous advancements in the
technological aspects within any nation or a respective region. The ultimate techniques that are
being used by existing competition or any new technology that has been introduced or in the
trend of a particular region enable a business to enhance its performance in the operations and all
the process (Amankwah-Amoah, Boso and Debrah, 2018). The multicultural business
environment of Spain enforces many companies to use the most innovative and effective
techniques that can help the organization to beat the extent of competition as well as to attract
more and more customers towards them. Spain is well flourished with the advanced
technological factors thus it gets the more opportunities as in encouraging the small and foreign
firms within the boundaries of nation. This helps the country in enhancing its growth and
economic development. Spain is the only first country to implement the electronic identification
of each of its citizens and every belonging among the European countries. There is an immense
level of competition in the hospitality and accommodation service markets as there is high inflow
of tourists every year. Thus it is the most crucial element for the Apex Hotel to undertake the
most effective tools and technique to operate its business sin Spain and to lead among the strong
rivals in the same industry. The research and development department of Spain is quite efficient
in providing nee innovation and invention for its local people. Thus the people over there have
developed a habit of demanding new and innovative techniques to be displayed and associated
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with the offering that a company provides in the market place. The expansion of Apex hotel UK
in Spain should meet the following expectations of the customers and local market shares to
capture more and effective shares among them (Armstrong and et. al., 2015). The company can
certainly adapts the different, new and effective techniques that are being in practice by existing
hotels. Thus it will help the organization to bring more attention of the local consumers towards
them. Being an international venture it would be more effective as well as influence to
implement the locally developed technologies at a limited level. This will help the hotel to get
the maximum amount of profitability as well as it will help in saving a lot of time and cost of the
company to research.
The participation of Spain in the technological aspects of security, traffic control,
renewable energies, civil engineering, and mobile communication is quite impressive e and
remarkable as the company holds a quite distinctive approach in the EU (Brouthers, Nakos and
Dimitratos, 2015). With this is it influences many foreign industries to invest and expand their
business in the home land of Spain. The rapid flow of technological advancement in the country
are the major reason for the mass industrialization as this will also provide the opportunity to
Apex Hotels to establish its venture chain here and gain an effective amount of positive
outcomes in the initial stage of the business, as new technologies such as the social media
marketing and artificial intelligence based security system by Apex Hotels, in the hospitality
industry will bring the revolution in the sector and that will attract the high class and innovation
friendly audience of the nation.
Environmental factors
The environmental factors of any particular region or a country involves those elements
that are comprised of the natural resources or any distinctive features that are the integral parts of
the respective natural environment of the country (Skudiene, Auruskeviciene and Sukeviciute,
2015). The environmental factors certainly includes the natural habitat, any nature oriented
location, climatic conditions, and so on. While these elements are considered as the
incontrollable factors, they impacts on the ultimate workings of the business either directly or
indirectly. The influence of the environmental factors on new and foreign industries within the
confines of Spain, differs accordingly. Spain is considered as the sunniest country among the
different nations of Europe, the country is also has a renowned position among the world that
determines it as the most favorable holiday destination of the people from all over the globe. The
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most visited and globally popular cities of the nation are Madrid, Barcelona, Valencia, Seville,
and Malaga. Along with that the country has a wide range of ancient and popular heritage sites.
The well flourished natural sceneries of the country including big and beautiful mountains and
valleys, wide range of the Spanish food, different kind of cuisines, dishes and traditional customs
(Martin and Javalgi, 2016). These kind of environmental elements attracts more and more of
tourist and travellers from all over the world. Thus with a large number of tourist inflow the
country invites more number of hospitality based industries in the country to operate their
business and provide the best services to the tourist so that the nation gets a goodwill in the other
respective countries as well. The reason for the environmental development is the attraction of
the tourism as it contributes at the rate of 11 % in the overall economy of the nation. The
introduction of Apex Hotel in the environment of Spain can be a great opportunity to both the
tourism industry as well as for the hotel itself. The growing numbers of tourists and domestic
visitors will provide a certain opportunities to Apex Hotels as the hotel is a foreign intermediary,
it will certainly attract the tourist, along with that the hotel can pick some of the top spots of
tourism and heavy gatherings for the establishment of new hotel venture there. This will enhance
the reach of the hotel and maximum capturing of that respective market place will also be
increased in favor of Apex Hotels.
CONCLUSION
The above report and its findings conclude that it is crucial for any company to undertake all
the aspects of global marketing system to expand the business in other foreign countries. The
evaluation of the external environmental factors and set up the planning accordingly as per the
outcomes from the analysis of the environmental factors by considering the characteristics of
brand and managing all the respective elements as per the nature of organisation in hospitality
industry. The objectives of the respective hotel company in expanding the business in other
European country will be solely accomplished as most of the environmental factors offer
numerous opportunities to perform and promote the business of respective industry within the
confines of the nation.
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REFRENCES
Books and Journals
Amankwah-Amoah, J., Boso, N. and Debrah, Y. A., 2018. Africa rising in an emerging world: an
international marketing perspective. International Marketing Review. 35(4). pp.550-559.
Armstrong, G. and et. al., 2015. Marketing: an introduction.
Baker, M. J. and Saren, M. eds., 2016. Marketing theory: a student text. Sage.
Bianchi, C. and Mathews, S., 2016. Internet marketing and export market growth in Chile.
Journal of Business Research. 69(2). pp.426-434.
Brouthers, K. D., Nakos, G. and Dimitratos, P., 2015. SME entrepreneurial orientation,
international performance, and the moderating role of strategic alliances.
Entrepreneurship Theory and Practice. 39(5). pp.1161-1187.
Christodoulides, G., Cadogan, J. W. and Veloutsou, C., 2015. Consumer-based brand equity
measurement: lessons learned from an international study. International Marketing
Review. 32(3/4). pp.307-328.
Czinkota, M. R. and Ronkainen, I. A., 2013. International marketing. Cengage Learning.
Hoppner, J. J. and Griffith, D. A., 2015. Looking back to move forward: a review of the
evolution of research in international marketing channels. Journal of Retailing. 91(4).
pp.610-626.
Martin, S. L. and Javalgi, R. R. G., 2016. Entrepreneurial orientation, marketing capabilities and
performance: the moderating role of competitive intensity on Latin American
International new ventures. Journal of Business Research. 69(6). pp.2040-2051.
Richter, N. F. and et. al., 2016. A critical look at the use of SEM in international business
research. International Marketing Review. 33(3). pp.376-404.
Rosson, P. J. and Ford, I. D., 2016. Stake, conflict and performance in export marketing
channels. In Proceedings of the 1979 Academy of Marketing Science (AMS) Annual
Conference (pp. 66-69). Springer, Cham.
Skudiene, V., Auruskeviciene, V. and Sukeviciute, L., 2015. Internationalization model
revisited: e-marketing approach. Procedia-Social and Behavioral Sciences. 213. pp.918-
924.
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