Profiling an International Market: Grand Hotel Group Analysis

This report analyzes the international market profiling for the Grand Hotel Group, focusing on potential expansion into international markets such as Malaysia and New Zealand. The analysis covers the hotel group's strengths, including acquisitions and multicultural adaptability, and evaluates the suitability of these markets based on factors like tourism growth, market accessibility, and cultural stability. The report details market segmentation strategies, including geographic, demographic, psychographic, and behavioral segmentation, to identify target customers and their preferences. It also outlines marketing strategies, such as promotion, social media engagement, and advertising, along with the use of unique selling propositions (USPs) to differentiate the hotel group's services. The report concludes by discussing the strategic marketing options to expand the customer base worldwide, emphasizing the importance of understanding and adapting to the specific characteristics of the target market. The report also provides an in-depth look at how the company can enter the market using mergers and acquisitions as a strategy, and how demographic, psychographic, and geographic descriptions of the market will be used to identify the target buyer. The report also includes marketing strategies to expand the customer base worldwide.

Running Head: Profiling an International Market
Profiling an International Market

Profiling an International Market 1
Contents
Part 1: selection of potential international market and analysis of their suitability....................................2
Task 1.......................................................................................................................................................2
Task 2.......................................................................................................................................................5
Part 2: Analysis of positioning strategy along with target market and audience........................................8
Task 1.......................................................................................................................................................8
Task 2.......................................................................................................................................................9
References.................................................................................................................................................11

Profiling an International Market 2
Part 1: selection of potential international market and analysis of their
suitability
Task 1
a) Talking about capabilities and strengths of the grand hotel group, it shall be noted that the
organization currently is successfully working in the target market; and is gaining the
competitive edge with the given approaches to manage the business actions. Further the
capabilities and strengths of Grand Hotel Group are discussed below:
 Acquisition of small hotel chain: as the organization acquired small hotel chain
which resulted in the growth of the company. This acquisition process helped the
company to expand it base internationally and gain customer base in the market.
Due to acquisition, guests of all country and culture were welcomed in the hotel
and they were treated equally according to their cultural specifications, so as to
gain larger satisfaction of customers as well. This acted as an advantage to the
organization in their growth process (Dursun, and Caber, 2016).
 Specialism in multicultural adaptability: as the organization acquired many
other companies having different cultural values according to their region in
which they survive, due to which the grand hotel group also gained assistance in
handling the customers of different cultures. The organization enjoyed diversified
customers base which helped them to understand the demands of the customers in
a better way. Resulting in the adapting different cultural values helped the
organization to grow and survive in the competitive world (Goswami, Barman,
and Sarmah, 2017).
 Possess strong financial ability: as noticed in the case study the organization,
employed numerous employees due to increasing demand for their services in the
market. Also, it shall be noted that grand hotel group even acquired many hotels
for the purpose of expansion, so fact which came into existence in that grand hotel
group has a lot of reserves kept with them which makes the organization more
strong in the global market (Barber 2014).
b) In order to determine various sources of information, the organization initiated
investigation for the selection of international market mainly Malaysia, New Zealand etc.

Profiling an International Market 3
Firstly the organization gathered the information about these countries so as to open their
new hotel chain. The expected growth of the company from these promising areas was
analyzed by the way of market analysis.
Talking about Malaysia being one of the best destination for vacation purpose, so
concerning the increasing tourism in the organization, the company will enjoy a larger
market size if their open their chain in Malaysia. Market accessibility refers to the degree
to which the company of the whole industry is accessible to the people present in the
market. So the country holds effective market promotion techniques in the country which
benefits the customers to gain knowledge about the prevailing offers given by companies
regarding hotel services (Gannon, Roper, and Doherty 2015).
Furthermore, the legal and cultural conditions of Malaysia and New Zealand are stable
and will not negatively impact the growth of the hotel chain in the countries. In fact both
the countries inherit good cultural value which gives an advantage to the hotel group to
warmly welcome the visitors and serve them and increase their satisfaction level.
Malaysia is called as fruit for the industrial growth and political stabilities, thus it seems
that the company will not face the issue in this case.
c) The suitability of the organizational business activity in alignment to the potential
market, it shall be noted that as discussed above, the market conditions of Malaysia and
new Zealand are both suitable for the company to initiate their business activities. further
detailed description of the potential market are discussed below:
 Suitability of market initiates sustainability of the organization in the potential
market, thus it shall be noted that the grand hotel group have the efficiencies to
optimize the resources available in the market of Malaysia and New Zealand. As
the organization already holds a chain in many other countries as well due to
which they have adequate communication skills to access the target market and
avail benefits as well (Hall, and Rusher 2013).
 Furthermore talking about the resources available in both the countries which can
help the Grand Hotel Group to appropriately initiate their business, it shall be
noted that in both the countries tourism sector is at the prominent stage which
helps the hospitality sector to initiate and operates its business functions actively.

Profiling an International Market 4
d) As known to all that Grand Hotel Group is an already flourished company which has
inaugurated their branches at many part of the world, so they will not face difficulty in
determining strategies for marketing and accessing information. Further taking about the
marketing strategies of the company, they use the traditional means to attain the market
while stepping in a new environment. Thus, the technique which Grand Hotel Group will
apply is that they will collect the market information through surveys from the visitors
and gain secondary information various aspects present in the society. I order to gain the
competitive in these countries also the organization need to attain full and clear details
about the target market. For that purpose they will interview and take survey from the
visitors and prospective people to know about the taste and preference of customers from
the company. Also the company shall look for the competitors present in society who can
hinder the growth of the company in competitive market (Hendrikx, et. al., 2013).
Further considering all such aspects the organization shall implement the activities in the
society and attain the resources. On the basis of such information about the clients
present in the market and taste, the organization shall develop and plan which shall aim to
optimize the resource from the society so as to fulfill the demand of the customers
present in the society.
e) The process through which the company shall enter in the market is by the way of merger
and acquisition. Already the organization holds a large of many hotel chains which they
have earned through this entry type, thus it is best suited method for the organization.
Further while profiling the market, the demographic, psychographic and geographic
description of the market and the company shall be overlooked. The target buyer of the
company shall be both male and female who can be either married or single. Further the
middle age people who have higher income levels are more like to expend in travelling.
Thus, they become a part of the organizations profiling. The hotel can be established near
the monuments or tourist sites present in the country. People will invest in the company f
they have the mindset to expend for fun and luxury (Mok, Sparks, and Kadampully
2013).

Profiling an International Market 5
Task 2
a) In order to evaluate the key approaches which will help the organization to determine
the total market within selected countries, the hotel group shall initially identify the
target market the products and services which the hotel group renders. Talking about
the segmentation of the target market the details are mentioned below:
 Geographic segmentation: the country includes two main islands and is
situated in the southwest Pacific Ocean which adds grace to the beauty of the
country. Thus, this feature will help the company to initiate sale of their
services in the country (Balli, and Tsui 2016).
 Demographic segmentation: as domestic tourism in New Zealand is big up
to $ 12.4 billion which remarks that people of the country are interested in this

Profiling an International Market 6
sector. In accordance with this aspect the demographic description of the
company that around 60% of the married couples do not stay at home during
their breaks or their children vacations (Silver 2017). So it shall be assumed
that middle age and high level income married people are more interested
spending their money on tourism.
 Psychographic segmentation: also companies present in the country reward
their vacations offs, due to which they are insisted to go on short trips in the
country and embrace their lives.
 Behavioral segmentation: as discussed above most of the people living in the
country are interested in traveling due to which it has simultaneously become
their behavior (Wirtz, and Lovelock 2017).
In accordance with the demographics present the country, the company shall
initiate a good communication plan which supplies and circulate all the details
about the company in the target market. Further, they shall display their features
in such a way that the entire customer gets attracted towards the hotel. Lastly, the
company shall keep in mind the cultural and ethnic background of people and
then work according. This activity will not harm the sentiments and emotions of
customers which will result in the success of the organization in the target market
(Pyo 2015).
b) The target market for the Grand Hotel Group in terms of potential users it shall be
noted that the organization shall on the clients who are segmented according to the
segmentation process initiated by the organization.
Further according to the geographical descriptor it shall be noted that the organization
shall target the clients who are more interest in traveling ad living their lives.
Adventure and nature lover should be the main target of the organization according to
geographical segmentation.
Next according to the demographic segmentation, the potential users who shall attain
the services of the hotel are the middle age married or unmarried people who have
keen interest in traveling and visiting cities (Firat, Ozaltin Turker, and Metin 2014).

Profiling an International Market 7
According to psychographic segmentation, the company shall target those people who
are wanderlust and have a mindset to live life in a luxurious way. Grand Hotel Group
being a high profile company provides leisure and luxurious services to the people in
the country.
And the behavioral segmentation shows that the people who have a regular lifestyle
of visiting places and spending their lifestyle in a leisure way shall be attracted by the
organization to provide their hotel services.
c) the strategic marketing options which the organization shall use so as to expand the
customer base worldwide is that, the organization shall use the promotion and
advertisement strategies to communicate to people and survey the feature of the
company services provided in the international market (Rondan-Cataluña, and Rosa-
Diaz 2014). The targeting strategies which best meet the marketing plan of the
company are discussed below:
 In accordance with the marketing strategies of the organization the hotel
group shall initiate the promotion strategies in such a way that it contributes
fame to the organization in the global target market. Further, they shall
circulate the information about the products and services with its
specifications so that the people get attracted towards it and attain the
services. Further t organization shall tie-up with various social media sites
which survey information about the hotel and let people choose their hotel by
comparing, with the help of such site people will get acknowledge with the
services of the organization. Also, such sites provide the facility of sorting
hotels according to their suitability due to which the prospective people can
use the services of the company. Such site will promote the name of the hotel
among the right people which the company aims to target (Nguyen 2016).
 Further, the advertisement’s strategies shall be used by the organization that it
let people know about the specification of products and services provided by
the company. The USP (unique selling proposition) of the company shall be
defined which shall attract the people to attain the service of the company.
The USP of the company will help them to differentiate their products and
services from the other competitors present in the target market.

Profiling an International Market 8
Thus with the use of such strategies the organization shall use the targeting
strategies which shall support the marketing strategies of the organization.
d) In order to implement the target market strategy, the organization shall initiate a
communication plan under which they shall communicate the above mentioned
information to all the clients of the company. This process will help them to develop
customers for the company. Apart from that through this process, people will get to
know about the specifications of the company (Yabs 2014). They shall also provide
attractive offers to the customers to motivate them to buys the products and services
of the company. First come first serve, discounts, free visits etc. services shall be
provided to the client is that they are insisted to use the services of the company again
and again and become a regular customer of the company. Thus, in this will the
company shall initiate plan which can help them to target the prospective people
present in the market.
Part 2: Analysis of positioning strategy along with target market and
audience
Task 1
a) Talking about the total market of the company Grand Hotel Group it shall be noted
that the organization aims to target the higher section of the society who travels in
New Zealand just for fun and relaxation purposes. The people who want to have
luxurious time while sitting in hotel and the target of the Grand Hotel group people.
People having high-income range and who travel in five-star hotels are the people
who shall be targeted by the organization. Also, the people who come to business
meetings shall be targeted by the organization as they initiate repetitive sales (Bowie,
et. al., 2016).
b) The consumer profiles that are fit for the company are the high profile people present
in the society. They are those people who either go on a business meeting or want to
spend their time in relaxing. The middle-aged people are mainly targeted by the
organization that has high profile income.

Profiling an International Market 9
c) To implement the market profile created by the organization, the management shall
initiate the market profiling strategies which can attract the customers and create a
brand of the company in the international market. The company shall aim to initiate
good customer relationship so as to gain a definite goodwill of the company in the
target market. Also, advertisement can also help the company to create a profile of the
company in the market. The advertisement shall include all the specifications of the
company and it shall also aim to respect the culture and religion prevalence in the
country (Weaver 2017).
Task 2
a) Two of the major positioning strategies which are available for the company to fulfill
the market requirements of the company are positioning by product user and position
by quality and price. Under the process of positioning by product user, the
organization shall position their product according to the personality and the behavior
of customers towards the products and services served by the company. Thus, if the
organization will position their product according to personality activities done by the
people present in the market then the company can earn benefits. Another position
strategy is the price and quality strategy, this strategy shall be used by the
organization in a way that it creates a distinctive position of the product in the eyes of
high profile people.
b) The organization shall deeply gain the knowledge about the dos and don’ts cultural
features present in the society and then apply these features in the positioning plan so
as to achieve growth (Silver 2017).
c) the positioning implementation plan which the company shall apply is discussed
below:
 The company shall gain adequate knowledge about the products and services
which they are going to provide in the target market.
 Further, they shall determine the ideal product position on the basis of the
countries map.
 Later they shall determine the alternative strategies for achieving the ideal
product position in the target market.
 Then they shall select implementation of the strategies.

Profiling an International Market 10
 Lastly, the organization shall compare the actual position with the ideal
positions defined.

Profiling an International Market 11
References
Balli, F. and Tsui, W.H.K., 2016. Tourism demand spillovers between Australia and New
Zealand: Evidence from the partner countries. Journal of Travel Research, 55(6), pp.804-812.
Barber, N.A., 2014. Profiling the potential “green” hotel guest: Who are they and what do they
want?. Journal of Hospitality & Tourism Research, 38(3), pp.361-387.
Bowie, D., Buttle, F., Brookes, M. and Mariussen, A., 2016. Hospitality marketing. Taylor &
Francis.
Dursun, A. and Caber, M., 2016. Using data mining techniques for profiling profitable hotel
customers: An application of RFM analysis. Tourism Management Perspectives, 18, pp.153-
160.
Firat, A., Ozaltin Turker, G. and Metin, I., 2014. Specification of target market in small and
medium scale accommodation businesses: a study on boutique hotels operating in city of
Mugla. Tourismos, 9(2).
Gannon, J.M., Roper, A. and Doherty, L., 2015. Strategic human resource management:
Insights from the international hotel industry. International Journal of Hospitality
Management, 47, pp.65-75.
Goswami, S., Barman, P. and Sarmah, S., 2017. Profiling Customers in the Hospitality Sector:
An Approach towards Market Segmentation in Hotels and Restaurants in Assam. IUP Journal
of Marketing Management, 16(2), p.27.
Hall, C.M. and Rusher, K., 2013. Risky lifestyles? Entrepreneurial characteristics of the New
Zealand bed and breakfast sector. Small in Firms Tourism, Michael, HC and K. Rusher (Eds.).
Elsevier Publishing Company, Amsterdam, Netherlands, pp.83-98.
Hendrikx, J., Zammit, C., Hreinsson, E.Ö. and Becken, S., 2013. A comparative assessment of
the potential impact of climate change on the ski industry in New Zealand and
Australia. Climatic Change, 119(3-4), pp.965-978.

Profiling an International Market 12
Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality,
tourism, and leisure. Routledge.
Nguyen, T., 2016. Study on the Marketing Strategy for MICE Industry-Case: Pearl River Hotel
in Vietnam.
Pyo, S., 2015. Integrating tourist market segmentation, targeting, and positioning using
association rules. Information Technology & Tourism, 15(3), pp.253-281.
Rondan-Cataluña, F.J. and Rosa-Diaz, I.M., 2014. Segmenting hotel clients by pricing
variables and value for money. Current issues in tourism, 17(1), pp.60-71.
Silver, K., 2017. Six ways hotels are targeting the millennial market (and benefiting us all).
Viewed on November 8, 2017 from < http://www.nzherald.co.nz/travel/news/article.cfm?
c_id=7&objectid=11885762>
Weaver, A., 2017. a case study of new Zealand. The Routledge Handbook of Consumer
Behaviour in Hospitality and Tourism, p.459.
Wirtz, J. and Lovelock, C., 2017. Positioning Services in Competitive Markets. World
Scientific.
Yabs, J.K., 2014. Market Segmentation Strategies Used as Competitive Advantage Tool: A
Case of Chloride Exide Kenya Limited. Journal of Economics and Sustainable
Development, 5(26), pp.P42-48.