International Marketing Report: Hilton Hotel Global Expansion Analysis

This report provides an in-depth analysis of Hilton Hotel's international marketing strategies, focusing on the rationale behind global expansion and various routes to market. It examines the scope and key concepts of international marketing, highlighting differences between local and international approaches, and the opportunities and challenges Hilton faces in the global market. The report also evaluates the criteria for entering international markets, emphasizing the importance of market research, GDP analysis, risk assessment, and competitive landscape evaluation. Furthermore, it discusses various market entry strategies, including online selling, trade shows, and contractual agreements, along with their respective advantages and disadvantages. The analysis includes a critical evaluation of international marketing, considering both its potential for global exposure and the challenges posed by competition and varying market conditions. The report concludes by emphasizing the need for tailored marketing strategies based on specific customer segments and market characteristics, which can be found with similar solved assignments on Desklib.

International Marketing

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Part 1................................................................................................................................................1
Introduction of organization........................................................................................................1
Scope and key concepts of international marketing....................................................................2
Rationale of the organization to market internationally and different routes of marketing........3
Part 2................................................................................................................................................5
Selection process to use when entering to any international market...........................................5
Various market entries with merits and demerits of each............................................................7
CONCLUSION................................................................................................................................8
REFERENCE.................................................................................................................................10

INTRODUCTION
This report will discuss about Hilton hotel which is the multinational company. Company is
already expanded in many countries. This report will evaluate scope of the international
marketing and the rationale of the organisation which want to market globally by describing
various routes (McCalla, 2019). This report will analyse opportunities and challenges in the
global market and the selection process which company can use to enter the international
market. This report will also discuss strategies through which company can go with international
expansion with advantages and disadvantages.
MAIN BODY
Part 1
Introduction of organisation
Hilton is the global hotel which have presence in many countries. It is established in the year
1919. this company is known for its good quality of services in the hospitality industry.
Company have well qualified and trained staff which never disappoint management when it
comes to customer handling (Kaleka and Morgan, 2019). They have different cuisine in their
menu so that they can satisfy every type of customer. Mission of the Hilton is to not disappoint
customers and providing them good services.
International marketing and differences with local marketing
international marketing-
international marketing refers to applying the marketing principles in more than one country. In
simple language, international marketing means when company do trade of goods and services
within different countries. international marketing is the expanded version of local marketing
practice. It means planning and implementing the pricing and promotion which helps in
fulfilling company's objectives. Advanced technologies are helping company in doing easy
marketing of their products and services.
The major difference between local and international marketing is that local market deals with
the single market whereas global marketing deals with several markets of several countries
(Cavusgil, Deligonul, Kardes and Cavusgil, 2018). Domestic market have same taste of
customers whereas international marketing have to deal with different customers which have
separate taste. In the case of local marketing there is no language barrier so it has become easy
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for the company to plan for the efficient marketing strategies. While global marketing have
language barrier so it makes difficult for global market when they decide for the marketing
strategies. Less financial resources are required for local marketing and huge financial resources
are required for international marketing.
Scope and key concepts of international marketing
There are wide scope of international marketing which are as follows:
it develops peace within nations-
when companies carry international marketing than it spreads global peace and prosperity
among nations (Paul, 2019). Business activities are production, marketing, development etc
which includes people around the globe. When employees of different nations have face to face
conversations than it increases collaboration and cooperation within them.
It open opportunities and also reduces risk-
it helps company in opening door of the global market for the company. There are many
countries in which cheap labours are available so Hilton can take advantage of cost
effectiveness. When company expands there business operations than it also reduces various
risks like social risks etc.
imports-
importing products means when local companies import products from foreign companies so
that those products can get available to the local people (Yang, 2018). The products which are
imported are if good quality and also cost effective. Importing products also help domestic
company to accomplish their business objective when they provide unique products in the
market.
Exports-
exporting practice means when company send their products to other countries for the purpose
of expanding their business. Exporting is done of the final products to international markets
where the products are sell to local customers so that company can generate higher revenue
(Desbordes and Richelieu, 2019). It is not necessary that only final products will be exported but
semi final products are also exported by the company. Import and export both practice are
helpful in increasing company's reach.
Contractual agreement-
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when company moves to cross borders than they increase chances of getting lot of success and
growth. Contractual agreement can be in the terms of licensing or it can be in any other form.
Concept of international marketing:
international marketing involves non human factors like product, price, place and promotion.
There is also the social aspect which is associated with this marketing as it includes human
factors as well which are the pattern of the customers of the behaviour and attitude of the society
towards company. International marketing is separate from domestic marketing because it fulfils
the needs of the international buyers. Here role of marketing manager is important because they
have to operate in international environment. As marketing manager have to think
internationally because they are dealing with international competitors, consumers, employees,
suppliers etc. as international marketing went into abroad so Hilton is exposed with various
political risks.
Rationale of the organisation to market internationally and different routes of marketing
Marketing internationally is very important for the company for the purpose of achieving growth
and development (Vrontis, Christofi and Katsikeas, 2020). There are various reasons for Hilton
that why they should market internationally. As international market have its own merits and
demerits.
To went global-
global market gives opportunities to the company to expand their business at the international
level and also they can increase their revenue and sales. There are various global companies like
Hilton is generating higher revenue because they are expanded overseas.
Increasing brand value-
when company goes overseas than it enhances their brand value because people in different
countries started identifying the company which automatically increases the value of the brand.
When brand value of company increases than they make higher profits at international markets.
Social factors-
social and cultural factors are playing important role and influence the function of international
market (Boso, Debrah and Amankwah-Amoah, 2018). Company should have research about the
cultural beliefs and values of the local people of that country than than they should launch their
products and services accordingly. As there are chances that as per the cultural beliefs of the
country the people can oppose your product and services if it is market in the wrong manner as
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per the belief of local people so it is essential that company should have done research before
launching their services in that particular market.
Routes to market
selling online-
online selling in becoming more famous as companies have started selling their products online.
Selling products online is easy and there is easy option to make payment online. Companies
have started to sell products online because through this way they are able to generate online
sales as well.
Trade shows of exhibition-
trade shows is the best way through which Hilton can market its brand. This will help company
in reaching their potential customers (Rezaee, 2017). It is not necessary that company will get
their end customers but they can develop network connections with the people. Trade shows are
useful for the purpose of branding.
Distributing catalogues-
company can distribute catalogue within the customers which consists of contact details and that
will be helpful in attracting more customers easily. Good quality and detailed catalogue should
be made which consists of all the service details which is provided by the company.
Opportunities and challenges of marketing internationally
opportunities of international marketing:
If the political factors of the foreign company is suitable for Hilton than expanding in that
country will be helpful for the company in expanding the sales and revenue. As political factors
plays major role in the growth of the company. Therefore, Hilton group can form the aligns
with the other organization which are already leading the international market fruitfully by
focusing and research and development programme. It is observed that Hilton has witnessed
higher profits from those countries where the economic conditions are stable. By expanding
internationally Hilton is getting opportunity to gain higher reputation in the market. It will also
become easy for the company to carry out their promotional activities through social media
because there are large number of customers in the international market which have presence on
various social media platforms (Adıgüzel, 2020). For instance the organisation has chance to
show the presence of the digital platform like Facebook, Instagram, chrome, google, Pinterest,
etc. in effective as well as efficient manner. Apart from that in less time company can target
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large number of customers and will also get more leads which can be converted by management
for attaining the goals. Moreover, the company has chance to attract large numbers of the
customers from different market segment by working on the reviews or the feedbacks deliver by
the consumers.
Challenges-
If there are opportunities then likewise there are various challenges as well. If the political
conditions are not suitable for the company than it can affect the business operations of the
company. In context to that the organization supposed to prepare the employees by delivering
training and development programme to deal with the forthcoming challenges. When it comes to
price factor than Hilton faces difficulty when they are dealing with developing of
underdeveloped nations (Kowalik, Danik and Francioni, 2020). As Hilton is the five star hotel,
so they charge high and due to high price they are facing problem in building good reputation in
the poor country. So every customer present in the market can not afford the expensive services
that hotel is offering. In those countries where some social media platforms are ban or people
are less exposed with social platforms than company face difficulty in marketing their services.
In order to that the company deliver the content or the information as per the preferences and
requirement of the nation.
Critical evaluate international marketing
International marketing provides chance to the market to attain global exposure. Although there
are various good points of global marketing but there are various problems also which is
associated with international marketing. When company enters any global market than they face
competition from domestic firms (Oyewole, 2018). Domestic firms creates problem for
company and do not allow them to get market share. To solve this issue there are various
companies which purchase local companies in order to reduce its competition. For marketing
their services in the oversea market, Hilton has adopted internet market because large number of
consumers are using internet so that is why it has become easy for the company to market their
products and services. Company can use email marketing, social media marketing or internet
marketing in the markets of developed of developing nations.
As there are many under developing countries where every customer is not available or using
internet so for that market, company can do direct selling or paid media advertising. So it is
important to adopt different marketing strategies in different markets. As it is not necessary that
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marketing strategy which is adopted in one market will also result fruitful in all the other market
as well. When company is planning for international marketing than they have to plan carefully
by keeping in mind the customer segment of that particular country in which they want to
market their products.
Part 2
Criteria of entering into international market
The best criteria to enter the international market is to make the research on the market and its
environment in effective as well as efficient manner. In context to that Hilton will determine the
GDP of the country before entering into international market for the growth prospective along
with the demand of the visitors in the particular market. Apart from that it is essential to
determine the risk factors of the country related to the security and currency devaluations. In
order to enter the international market the company will focus on the presence of the competitors
and their effectiveness in order to deliver the difficult competition in the marketplace. Moreover,
the company determine the demand and supply in the international market and will develop the
marketing strategies related to marketing mix. Along with that the company will focus on the
supply chain and distributional channel. It will give assistance in operating function and the
operation of the hospitality services of the company in appropriate manner.
Selection process to use when entering to any international market
There are various selection process which are chosen by Hilton while getting enter the
international market and some of them are mention below:
Market size-
Before taking entry in any of the international market it is essential that company should have
taken in view the market size in which company want to expand and also the availability of
resources in that market or not. This can come to know by doing research. So it is important to
conduct research and then only enter that specific market (tien, phu and chi, 2019).
Competitors-
It is necessary to find out the competitors which are available in the market. Company should
have also aware about the value of the competitors in the market. This will be helpful for hilton
in making their competitive strategy. If they have knowledge and understanding about their
competitors than it will be easy for them to beat the competition.
Legal requirement-
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Legislation and laws and regulations are important to consider before entering any new market.
Legal factor is the factor which can affect the market growth of the company. So it is important
that hilton should have taken care of this factor. There are chances that the manner in which
company is carrying their business activities is restricted in that particular country so that is why
it is important to evaluate legislation before entering.
Costs-
This is other element should, must be considered when entering the international market. There
is possibility that the pricing strategy which the company has adopted will not be acceptable in
that particular country. Example if any company has adopted premium pricing strategy but in
any under developed or developing country consumer is not able to purchase products or
services at premium price than there are highly chances that company has to shut down their
business operations from that country.
Customers types-
It is the duty of Hilton in order to identify key customers and bringing out such policies which
will fulfil the needs and demands of the customers (ibeh, crick and etemad, 2019). Company
should have find out the needs of customers before launching products in any market. There are
possibility that products which is accepted by one market can be rejected in different market.
Infrastructure-
Infrastructure of the company should have check before entering any global market. If company
will not get adequate infrastructure which is necessary for them to operate than there will be no
use of entering that market. This is also the reason that due to lack of infrastructure there are
many companies which has to shut their businesses from the specific country.
Various market entries with merits and demerits of each
Direct exporting-
It simple language it means when company direct export goods and services to the oversea
market (modes of entry into international business [advantages & disadvantages]., 2019). There
are many business which consider this method as the fastest method of entering the international
market. It is also considers as the direct sale because owner of the company is directly targeting
customers of international market. Company can export goods and then existing company can
sell their goods. It is the safest option as compared to establishing retail presence in the
international market.
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Advantages-
It is easy to select any foreign representative in the global market and company have many
choices to choose within. Before making any big investment in the global market company can
use this strategy to test their products in the global market.
Disadvantage-
This strategy can be expensive for offline products as everything has to start from scratch (agwu
and onwuegbuzie, 2018). For online products this strategy can be best fit but for the offline
products this strategy can consume more time that will going to invest in the research or hiring
the representative in that particular country.
Franchising and licensing-
those companies which wanted to expand in the oversea market by taking less risk than this
strategy will help them because in this strategy risk is taken by other business on behalf of the
company. In the licensing agreement, the global company will pay the owner company royalty
for using their brand name, trademarks, process, products or any of the intellectual properties.
Advantages-
it is the cost effective strategy for entering the oversea market. Licensing partner have complete
knowledge and understanding regarding local market. It gives handsome revenue to the
company. As the franchising partner is the local business owner so it helps in reducing political
risks. With the help of this method company can expand in many regions with minimum
investment.
Disadvantage-
There are various cases in which overall control will not be given to the licensing partner in the
global market (İpek, 2020). There are possibility that licensing partner can take complete
knowledge and becomes future competition for the organisation. If the licensing partner is
incompetent than the brand image and reputation is at the biggest risk.
Joint ventures-
this is also the most famous and preferable strategy of entering the foreign market which share
their knowledge, goodwill and expertise with other business. Companies which wanted to
expand their business in foreign land can do joint venture with the domestic or local business. In
the joint venture both local and international business will share risks and rewards. Profits will
be shared in agreed ratio within both the companies.
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Advantages-
in expanding in the market both businesses can use their expertise to attain growth and success
in the existing market. The political risk which is their in the joint venture will gets reduced
because of the presence of local partner which have all local market and government knowledge.
Often government is also lenient with local company. Within the partnering firms there is
exchange of intellectual properties, assets and technology.
Disadvantage-
there is probability that joint venture can lead to the cultural clashes because the partnering
companies were operated within different culture (Samiee and Chirapanda, 2019). Dissolution of
the joint venture can be the complicated process if there were any dispute within the companies.
Recommendations to Hilton
it is highly recommend that company should have do proper research before entering in any
foreign land. Through study should have done on the customer preference and taste. So that they
can bring changes in their business operations accordingly.
CONCLUSION
Through this report it can be concluded that international marketing is done by the company
when they want to expand their business by entering in oversea market. There is wide scope of
international marketing. It is helpful in establishing peace between nations and it also provides
opportunities to the company. Company can face political and economic challenges while
expanding there business internationally, if the economic condition of the country is not stable.
This report has discussed in detail the selection process which should be considered by the
company when they plan international expansion which can the market size, customer taste etc.
there are many modes through which company can enter in the international market which are
licencing, direct exporting etc.
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REFERENCE
Books and Journals
Adıgüzel, S., 2020. Market and brand positioning and sustainability strategies in international
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Agwu, M.E. and Onwuegbuzie, H.N., 2018. Effects of international marketing environments on
entrepreneurship development. Journal of Innovation and Entrepreneurship. 7(1). pp.1-
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Boso, N., Debrah, Y.A. and Amankwah-Amoah, J., 2018. International marketing strategies of
emerging market firms: Nature, boundary conditions, antecedents, and
outcomes. International Marketing Review.
Cavusgil, S.T., Deligonul, S., Kardes, I. and Cavusgil, E., 2018. Middle-class consumers in
emerging markets: Conceptualization, propositions, and implications for international
marketers. Journal of International Marketing. 26(3). pp.94-108.
Desbordes, M. and Richelieu, A. eds., 2019. International Sport Marketing: Issues and Practice.
Routledge.
Ibeh, K., Crick, D. and Etemad, H., 2019. International marketing knowledge and international
entrepreneurship in the contemporary multi speed global economy. International
Marketing Review.
İpek, İ., 2020. The relevance of international marketing strategy to emerging-market exporting
firms: from a systematic review towards a conceptual framework. International
Marketing Review.
Kaleka, A. and Morgan, N.A., 2019. How marketing capabilities and current performance drive
strategic intentions in international markets. Industrial Marketing Management. 78.
pp.108-121.
Kowalik, I., Danik, L. and Francioni, B., 2020. Specialized marketing capabilities and foreign
expansion of the international new ventures. Journal of Small Business Management,
pp.1-39.
McCalla, A.F., 2019. Strategies in international agricultural marketing: Public vs. private
sector (pp. 209-238). Routledge.
Oyewole, P., 2018. International marketing of services and developing countries. Services
Marketing Quarterly. 39(2). pp.79-91.
Paul, J., 2019. Marketing in emerging markets: a review, theoretical synthesis and
extension. International Journal of Emerging Markets.
Rezaee, R., 2017. The impact of international marketing strategies on export
performance. Journal of Business Administration Researches. 9(17). pp.55-80.
Samiee, S. and Chirapanda, S., 2019. International marketing strategy in emerging-market
exporting firms. Journal of International Marketing. 27(1). pp.20-37.
Tien, N.H., Phu, P.P. and Chi, D.T.P., 2019. The Role of International Marketing in
International Business Strategy.“. International Journal of Research in Marketing
Management and Sales. 1(2). pp.134-138.
Vrontis, D., Christofi, M. and Katsikeas, C.S., 2020. An assessment of the literature on cause-
related marketing: implications for international competitiveness and marketing
research. International Marketing Review.
Yang, M., 2018. International entrepreneurial marketing strategies of MNCs: Bricolage as
practiced by marketing managers. International Business Review. 27(5), pp.1045-1056.
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Online
Modes of Entry into International Business [Advantages & Disadvantages]., 2019. [Online].
Available through: <https://www.superheuristics.com/5-modes-of-entry-into-
international-markets/>
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