International Marketing Report: Analyzing Market Entry for Savoy Hotel

This report provides a comprehensive analysis of international marketing strategies, focusing on the case of the Savoy Hotel. It begins with an introduction to international marketing, defining key concepts and the importance of market analysis. The report then delves into various market entry routes, including exporting, licensing, franchising, and joint ventures, evaluating their advantages and disadvantages. It identifies opportunities and challenges in international marketing, followed by a critical evaluation of the international market context, emphasizing the need for adapting marketing strategies. The report further examines key criteria for selecting international markets and applies these criteria to the Savoy Hotel, recommending entry strategies. It explores the local versus global debate, investigates adaptations to the marketing mix (product, pricing, promotion, and distribution) in different international contexts, and evaluates various marketing approaches, including competitor analysis. The report concludes with recommendations for the Savoy Hotel's international operations, providing a detailed overview of how the marketing mix should be adapted for diverse international markets.

INTERNATIONAL
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
P1. Identification, analysis, and evaluation of the scope and key concepts of international
marketing as a whole...................................................................................................................1
P2. Discussion and formulation of various ways by which a firm can enter international
market without any hassle and also evaluating its routes............................................................2
M1. Identification and detailed analysis of the various opportunities and challenges that an
organisation faces in international marketing..............................................................................3
D1 Produce a critical evaluation of the international market context, including insight into how
organisations should adapt their marketing strategies for various markets.................................3
TASK 2............................................................................................................................................4
P3 Evaluate the key criteria and selection process to enter in international market....................4
Different strategies to enter in market with its advantages and dis-advantages..........................5
M2 Apply the market evaluation criteria, entry strategies and make recommendations for the
organisation..................................................................................................................................6
TASK 3............................................................................................................................................7
P5 Overview of key arguments in local vs global debate............................................................7
P6 Investigate how the product, pricing, promotional and distribution approach differs in a
variety of international contexts..................................................................................................8
M3 Evaluate the context and circumstances in which an organisation should adopt a global or
local approach, highlighting the implications of doing so...........................................................8
M4 Determine and articulate in detail how to adapt the marketing mix of a selected
organisation in different international markets............................................................................9
TASK 4............................................................................................................................................9
P7 Explain and analyse the various international marketing approaches organisations can
adopt............................................................................................................................................9
P8 Compare home and international orientation and ways to assess competitors, outlying the
implications of each approach...................................................................................................10
Recommendations for the company..........................................................................................11

M5 Evaluate various marketing approaches and competitor analysis in relation to an
organisation and make recommendations on how they should operate in an international
context........................................................................................................................................11
D2 Produce a critical evaluation of how the marketing mix is applied to a range of
international contexts.................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
International marketing is main activity for any organisation as it uses to develop the
business and increasing the productivity effectively. The aim of organization is to expand their
activities by entering in to international market as it understand the needs and wants of customers
then make efforts to provide the products accordingly which increases performance and
profitability (Luo and Bu, 2018). The management is responsible for all activities as they
conduct the market research at different places and bring the changes in their functions
effectively which supports to increase the performance and profitability. In other words,
international marketing considering firm that makes one and more decisions across the national
boundaries that can help to grow a business and manage the all functions in competitive
environment. To understand about international marketing Savoy Hotel has been selected that is
large size UK based hospitality industry, operating business in central, London by offering range
of products and services. The marketing manager conduct the environment analysis and
formulate plans to enter in to international market that can help to deliver better services. This
report covers understanding about how marketing contributes to business strategies, selection of
international markets, elements of market plan, and evaluation of international marketing efforts.
TASK1
P1. Identification, analysis, and evaluation of the scope and key concepts of international
marketing as a whole.
International marketing is an important aspect for each and every organisation that wants
to expand and grow in the long run as well as in the present market situation as it means trading
goods and services that are produced to different countries in the world. There are various key
concepts regarding international marketing such as market size and location that the firm is
planning to capture, its customer taste and preference, and various related aspects are very
crucial for the firm to analyse and evaluate so that it can add to the value of the firm in the long
run as well as it is very beneficial in increasing the current profitability rate of the firm (Agarwal
and Wu, 2018). As Savoy hotel is a prestigious hotel that is operating since a very long times and
is established in the UK and it is very important for the firm to analyse all the factors that are
associated with internation marketing as it is very crucial as well as critical in increasing the
profitability as well as growth of the firm. There are many aspects that the firm that is Savoy
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hotel has to keep in mind before expanding its firm in the international market like a report has to
be prepared before this process so that each and every aspect can be thoroughly examined in
detail and in case of any rectification it can be made before the actual process of expanding
which will result in increased growth and profitability of the firm. By doing all the above aspects
the firm that is the Savoy hotel can stand well ahead of its competitors that are prevailing in the
similar market conditions. Further there are three more key aspects of international marketing
and all of them are explained below in detail with reference to the company.
 Home market extension- In this the firm expands in the market that is known to the firm
that is in the home market only. As Savoy hotel has already crossed this stage
significantly so it does not have to bother much about it (Paul, 2018).
 Multi-domestic extension- In this aspect the firm expands in the domestic market taken
as a whole. Since Savoy hotel has successfully crossed this stage it does not have to
worry much about it in the current scenario.
 Global marketing- It is a concept of marketing in which the firm expands globally that
is in different countries including their home and domestic country. Savoy hotel is in this
stage and has to take every decision very carefully as it can increase the profitability of
the firm many times but it also has the potential to damage the value of the firm if not
implemented correctly.
P2. Discussion and formulation of various ways by which a firm can enter international market
without any hassle and also evaluating its routes
It is very important for a firm that is planning to expand that it has to do a detailed
research and analysis of all the factors that has the potential to affect the working of the business
either directly or indirectly (Zhong and et. al., 2016). As the firm that is Savoy hotel is planning
to expand and as it is planning to enter the international marketing it has to keep various things in
mind so that it does not prove to be an adverse decision. There are various routes through which
a firm specially Savoy hotel can enter into international marketing and all of them are explained
in detail below-
 Exporting- It is the most common method of international marketing that is old, tried
and tested approach which has a high success rate too in the competitive market
environment. The Savoy hotel is operating in an industry that majorly provides services
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to its customers and hence it is not one of the best route by which the firm can try to
expand to the international market (Rundh, 2016).
 Licensing- It is also an old, tried and tested method in which a firm obtains a licence of
running a business in different countries by paying a nominal fees in respect with it. As
the Savoy hotel is planning to expand it is one of the best way for it to expand as it has
already made a good image in the market that can be used positively in this aspect
(Samiee, Chabowski and Hult, 2015).
 Franchise- It is the method of international marketing that is most commonly used
nowadays and it also has a good success rate that attracts the firm to adopt this approach.
As Savoy hotel is well established and also have a good profitability rate and thus the
firm can adopt this method so that it can successfully expand in the international market.
 Joint venture- It is one of the most prominent method of international marketing as in it
a firm collaborate with another firm that is doing pretty well in the market and this is
currently in trend too in the international market. As Savoy hotel is doing exceptionally
well in the domestic market it can go for this as it can help the firm in increasing its
profitability in the international market which can prove crucial in the long run.
M1. Identification and detailed analysis of the various opportunities and challenges that an
organisation faces in international marketing
If a firm wants to expand in the international market there are various opportunities as
well as challenges that are associated with it also comes and each and every firm has to deal with
it in an effective as well as in an efficient manner (Steenkamp, 2019). Opportunities is that the
firm that is the Savoy hotel have an extended as well as a pretty large market to capture as
compared to earlier. But the challenge is that the company has to face stiff competition from the
existing firms that are already very well situated as well as placed in the similar industry as the
Savoy hotel.
D1 Produce a critical evaluation of the international market context, including insight into how
organisations should adapt their marketing strategies for various markets
The meaning of international marketing is activities which uses by companies to reach
the targeted audience and manage their business in changing environment. Every organisation
should be analysis the needs and wants of customers in which it is serving its products and
services which helps to reach the customers and maintain the higher performance by running a
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business effectively. Savoy Hotel is large size hotel in London which is offering variety of
products and services in changing environment by adopting the effective marketing strategies
that supports to run a business and increase the organisational productivity effectively in the
changing business environment (Magnusson and Westjohn, 2019).
TASK 2
P3 Evaluate the key criteria and selection process to enter in international market
The management of organisation is focused towards implement and expansion of business at
international level and it support the respective organisation for obtaining various benefits and it
is used for enhancing the profits, market area and the customer base to improve the sale of
products. Some steps that are implemented by management for entering into international market
are mention as follow:
Key criteria process and determination cycle to go into global market.
There are various measures and determination measures are used by the board of Savoy to
choose the correct nation. It is utilized by association to grow their business into a specific
nation. A portion of the Key measures perspectives that is utilized for choice of nation is:
Examination of market-It is critical that the earth and market of the country is researched
with the objective that the segments affecting business can be mutilated which can help in
restricting the negative effects of these components on association (Navarro-García, Schmidt and
Rey-Moreno, 2015). The usage of key organization device like PESTLE examination can help in
separating the business state of the country that can impact its business.
Rivalry examination- It is huge that the resistance which might be looked by the association
in market can be researched with the objective that the publicizing methods can be picked by the
association so the thought of customers can be gotten. This moreover empowers the association
in arranging its things and Savoy hotel position in the market with the objective that its
arrangements to can be extended.
Flexibly channel- The scattering channel should moreover be analysed which is basic to get
the reserve of rough materials from suppliers and besides to reach to the customers in a profitable
manner. It moreover helps in making the stock organization of association successful so it can
reach to its customers on time thusly growing their satisfaction.
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Observing the interest- The premium of association things and organizations ought to in like
manner be examined so the esteeming frameworks can be settled close by the level at which
association needs to deliver the things and organizations to fulfil customer needs (Surugiu and
Surugiu, 2015).
Some of the selection process and steps are mention as follow:
 Marketing objective- The process of formulating methods to enter in international
market define centre points to enter in international market. Like, Hotel savoy is focused
to enter in market by motive of enhancing market size.
 Parameter for selection- Savoy hotel manage and perform their operations in service
sector. So parameters must be decided to develop an effective strategy which is used by
management to perform all tasks with aim of delivering valuable services.
 Preliminary expenses- According to screening of organisation this is analyse by
management that all task are completed by implementing effective decisions. It is used
to analyse some small aspects of market.
 Short listing of market- With complete of screening steps organisation is focused
towards short listing of the aspects which is useful for selection of market (Coviello,
Jones and McDougall-Covin, 2015). Along with this there are different task performed
by management and it leads to short list specific areas.
 Start of commercial activities and evaluation- By analysing and considering all steps
it is identified by management commercial action perform an important role for Savoy
hotel to select market area. Moreover, tourism sector exists at all places so it is a positive
aspect for organisation.
Different strategies to enter in market with its advantages and dis-advantages
Exporting- The term exporting is defined as an effective way that are used by the
organisation for sale of Savoy products and hotel services beyond the local market. In the context
of service industry exporting refers to engage in travel services so it is easy for the management
to obtain higher results by satisfying customer travel needs from one place to another
(Demangeot, Broderick and Craig, 2015). In context of exporting management gain high results
by evaluating and understanding customer needs.
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Advantage- The economic value for organisation is increased by performing business into new
market area. Moreover, competitive edge is developed in local market through establishing
organisation at international level.
Disadvantage- Rules, policies and regulations generate complex factor and it create barrier for
hotel to transfer services in another market because services is based on time.
Franchising- Another important method that is beneficial for organisation refers to
expansion of organisation at the international level. This aids management to complete their
work by offering franchisee and it is effective to enter in international market because franchisee
aids local authorities to work with international brand and for savoy it generate beneficial results
by improving business size.
Advantage- This is related with cost of expansion and it state organisation to perform work into
different market by completion of task with efficiency.
Disadvantage- Amount which is invested in the franchisee aspects require large number of
formalities and capital to complete work.
Licensing- The term license aids an organisation to perform and manage their work with
official permission and it is used to complete task by managing permission (Andersson and
Evers, 2015). Moreover, all task are managed by which licensor perform work towards managing
task with permission of origin organisation.
Advantage- It is defined as a tool which is used to perform all task with high opportunity and it is
used for generating income according to decided roles. It is also easy for management to enter in
global market.
Disadvantage- With the perspective of organisation area this is analysed by organisation that
better results are obtained but the fees to get licensee and renew them on year basis are very
high.
M2 Apply the market evaluation criteria, entry strategies and make recommendations for the
organisation
According to the services of Hotel Savoy it is identified that to enter in international market
management is focused to complete all work with motive of performing work in an accurate
manner. Franchisee is an effective method and this is used to perform all tasks by effective
methods that aid to perform work according to local market and international market. This also
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aids organisation for completion of task with more efficiency because franchisee control
operations with self-basis in order to complete work with proper management.
TASK 3
P5 Overview of key arguments in local vs global debate
As the business size is increased and this leads management to enter in global market. This
is also analysed by organisation that each organisation perform their operations and functions by
experiencing local market first. So it is easy to understand and analyse some basic concepts
which is implemented among all market whether it is local or international. Example- Marketing
function adopted by all sectors and it is used for completion of task with determine of promoting
organisation business among all over the market. Global marketing increase and enhance
business size and it is used by management to satisfy needs of customers who exists at
international level. It determines that difference in local and global organisation creates
challenges for management. In context of managing all tasks with more efficiency management
is focused to enter in market that emerge market area for completion of task by generating needs
and wants of large customer base. Along with this there are different methods exists which is
used to enter in international market by focusing on needs of individuals for performing work in
an organised manner. It also aids organisation for enhancement in the business area but due
existing conditions of market and customer requirements are too dynamic. So it is complex for
Savoy hotel management hotel to understand and analyse the market. It also results that
organisation increase market area through delivering better operational activities.
Similarly, on the other side local marketing restrict market area of the organisation and
management only complete its task within a small area. This is also understand as well as
analysed that market control offers better system for delivering products to a limited number of
customers. Lack of investment and less knowledge of market understanding are the major
reasons due to which Savoy hotel face complexity for performing their work in an expanded
area. Moreover, local area is covered by management due to which brand value of hospitality
organisation is also reduced because of low sale of hospitality services. It results profits for
business are not earned at an adequate level due to low engage of market area and customer
involvement in market.
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P6 Investigate how the product, pricing, promotional and distribution approach differs in a
variety of international contexts.
In international marketing, it is important for management to bring the uses of effective
planning and strategies which can help to operate a business by influencing number of
customers. If all activities and functions are properly managed then it will be opportunity for
organisation to grow their business across the boundaries and maintain the higher profitability.
For developing and expanding a business promotional strategies are important that are uses by
management of Savoy Hotel that are as explained:
Pricing strategy – Price is sensitive issue for customers in relation to travel and tourism
industry as if prices of products are relevant then customers surely make decision to buy. Price is
the effective element which uses by organisation to increase the number of customers and
expanding the business in international market. Savoy Hotel is targeting to both middle and rich
class of people by adopting the discount and competitive pricing strategy that influences number
of customers.
Product Strategy – The organisation mainly established for delivering products and
services. Such as Savoy Hotel is adopting service services in which it offers prime quality of
services in relation to hotel that helps to run business and enter in to international market such as
Spain, Scotland etc.
Promotional strategy: This strategy is uses to know about product and service to
customers that helps to reach the organisational goals. As Savoy Hotel is using promotional
strategy by adopting the traditional promotion which helps to provide the information regarding
products and develop the business in international market (Park, 2020).
M3 Evaluate the context and circumstances in which an organisation should adopt a global or
local approach, highlighting the implications of doing so.
From the above discussion it has evaluated that Savoy Hotel is using the traditional
marketing approach initially but after formulating the expanding business plans it started to use
social, media, digital media etc. which is the part of modern approach helps to operate a business
regularly and increase the performance effectively in changing environment.
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