International Marketing Analysis and Strategy for Whitbread Plc

This report examines international marketing concepts and strategies, using Whitbread Plc as a case study. It defines international marketing, contrasts it with domestic marketing, and analyzes its scope and key concepts. The report explores rationales for international expansion, various market entry routes such as franchising and acquisitions, and the opportunities and challenges involved, including a SWOT analysis of Whitbread Plc. The report also evaluates potential international markets and identifies key success factors, focusing on the Netherlands as a target market for expansion. Furthermore, it investigates the adaptation and standardization of marketing plan elements across international markets and discusses the organization and evaluation of international marketing efforts.

International
Marketing

Introduction................................................................................................................................1
Part 1 /LO 1................................................................................................................................1
Demonstrate an understanding of how marketing contributes to business strategies in an
international context...............................................................................................................1
Part 1/LO2..................................................................................................................................7
Evaluate entry to a selection of international markets and define the key success factors....7
Task 2/LO 3..............................................................................................................................13
Investigate how elements of the marketing plan can be adapted or standardised across
international markets............................................................................................................13
Task 3/LO 4..............................................................................................................................21
Demonstrate an understanding of how to organise and evaluate international marketing
efforts...................................................................................................................................21
Conclusion................................................................................................................................23
References................................................................................................................................24

Introduction
International marketing has been defined by different authors. “The Global Marketing is the
applying of retailing principle in satisfies the different requirement and wants of various
people residing across the country’s borders.”The report will discuss about the international
marketing concept in the context of Whitbread Plc organisation which leading hospitality
industry of the UK. The report will compare international and domestic marketing for
analysing the impact of both marketing on the businesses and its activities. The report will
cover some of the routes through which hotel can enter in the international market for
expanding their business functions and operations. Marketing plan for Whitbread Plc will
also created in this report that supported the organisation to enhance their production and
profit level.
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Part 1 /LO 1
Demonstrate an understanding of how marketing contributes to business strategies in an
international context
Introduction to organisation
Whitbread plc is a UK based hotel brand and is largest Hotel and Restaurant Company and is
a market leading business in the hotel and Restaurant sectors. In the company Whitbread plc
employs 35000 employees with its 2000 outlets all over the UK.
Use a range of sources to define international marketing and highlight the main
differences to local marketing
It is essential for an organisation to continuously expand the organisational activities in order
to stay competitive in market. It can be said that, expanding the business operation in new
market will help in exploring more number of customers and enlarging the sales, hence is
profitable for an organisation. Global retailing is an essential concept which executes the
retailing process to more than one nation in order to make profit (Rosado-Serrano and Paul,
2018).
According to Cateora and Grapham, “International marketing can be defined as the
performance of business operations for plan, price, promotion and direct the transfer of
product and services in more than one nation (Definition and meaning of International
Marketing, 2019).” International marketing includes finding and satisfy the requirement of
customers more effectively than competitors, both locally and globally and coordinating
different marketing activities within the competitive global environment.
Difference between international and domestic marketing
International marketing helps in expanding the business operation in other nations that allows
an organisation to freely flow of goods and services in different nations to attain more profit.
International marketing is different from the domestic or local marketing.
Domestic marketing is limited within the nation’s boundaries. The scope of the marketing is
limited within a market. However, there is a direct control, of management efficiently over
the marketing process (Magno, Cassia and Bruni, 2017). The laws and regulation are easy to
understand and practice. Communication process of marketing is simple in domestic
marketing.
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 International marketing involves marketing in different nations, in international
marketing communication and control will be difficult because of different language
and culture. In international marketing, the marketers might find it difficult to analyse
different laws and regulation. In international marketing, it is important to identify the
risk that can be occurs due to unpredictable political and economic condition in
different countries.
Figure 1 Domestic and internal marketing
Comparing international and domestic marketing
In international marketing, business will require an effective planning and analysing all the
minute aspect of all the detail in marketing in other nations. The process of international
marketing requires large budget in order to identify and search an effective market to expand
the business (Sipe, 2016). On the other hand, domestic marketing does not require such
identifying and planning as the business are aware of the market condition and customer’s
preferences. However, in domestic marketing the marketers have limited marketing scope.
While in international marketing, marketers can done effective research of the different
nations and choose as per the business model and practices.
Analyse the scope of and key concepts of international marketing
With the rapid increasing in the globalisation, the scope for the international marketing in
respect to Whitbread plc is spreading widely. Hence, the variant of international marketing
has various scopes the business group seeks for international marketing can opt for different
opportunity of business expansion which includes licensing, merger and acquisition. The
business group can also collaborate with international brands which help in positioning the
business in international level. Along with this, there are other scopes which include
developing strategic alliances, consultancy services and strengthening the trade related
knowledge and technical skills (Chiang and Liu, 2017). Thus, the present hotel brand of UK,
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Whitbread plc can make effective planning considering the international practices. Whitbread
plc is expanding its business practices in international level. It not only helps in increasing
profit and customer base but also is effective in building brand image at international level.
The concept of International marketing is clear that includes the process of planning and
execution the conception. It also increases the process of pricing, promotion and distribution
of goods and services to create exchanges that satisfy individuals and organisational
objectives. The key concept of international marketing is concerned with having effective
orientation to foreign trade and also helps business to enter into international market. The
concept of International marketing is clear to perform activities that related to enhance the
profitability of the organisation. The products are effectively developed to satisfy the needs
and wants of the customers. The motive for expanding in the international marketing is
related to expansion of technology and increasing the global competition.
Rationale for an organisation to want to market internationally and various routes to
market an organisation can adopt.
Whitbread plc is a UK based hotel brand and is largest Hotel and Restaurant Company and is
a market leading business in the hotel and Restaurant sectors. In the company Whitbread plc
employs 35000 employees with its 2000 outlets all over the UK (Leary, 2016). Thus, the
cited hotel has the capability to expanding its operation at global level to improve and
increase its business on a large extent.
Expansion of the business operation at international level will help in increasing the customer
brand, profitability of the organisation and also help in establishing a positive brand
recognization are another rationale for engage in international marketing. Another rationale
for Whitbread plc to go international is, being such popular brand in UK hotel and restaurant
market, it does not have strong presence in international market. Moreover, the increasing
competitions in UK are forcing the hotel brand to expand its business in new countries
(Ignatiev, 2015). Expanding the business in new market will help in exposure of new pool of
customers which leads to increase the sales of the hotel services and increasing the overall
profitability of firm.
Routes to enter international market
Whitbread plc has different way for entering a foreign market in order to expand the business
operations. Following are some routes which are available to enter in international market.
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Franchising: It is the process in which an organisation allows the other party in foreign
market to use their name, logo and provide the services or product to customer. Franchising
method is completed with a mutual agreement agreed by both the parties (Modes of Entry
into International Markets (Place), 2019). The organisation in foreign market, franchisees are
required to maintaining the quality and standard of services and product as per the guideline
of franchiser. Whitbread plc can take this route to enter a new market.
Acquisition and merger: It is considered as one of the most effectual to enter a foreign
market. Whitbread plc can adopt this route as an entry strategy to enter the new market by
acquiring or merging with the existing and well established business in the foreign market. It
is an effective strategy that helps Whitbread plc in attaining the brand recognisation, as well
as established customer base and market share for the business.
International sales subsidiary: In this mode of entry, Whitbread plc can own an
manufacturing plant in other country like the organisation can invest in building, equipment
and workforce in foreign market (Gelderblom, 2015). This is also referred as Foreign Direct
Investment (FDI). It can be in form of either is a new-build or the organisation can acquire a
business with effective equipment which is effective in setting up business in foreign market.
It helps Whitbread plc to understand the local market and the requirement and taste of
consumers.
In addition to this, there are few other entry mode in foreign market which includes direct
exporting, partnership with established company, joint-venture, licensing etc.
The opportunities and challenges that marketing internationally presents to an
organization
It can be said that there are various challenges as well as various opportunities for Whitbread
plc to expand its operation internationally. The organisation has to analyse its strength and
weaknesses which helps in overcoming the possible challenges. In this regards, the SWOT
analysis tool will be used to identify Whitbread plc’s respective strength, weaknesses, threat
and opportunities.
SWOT analysis of Whitbread plc
Strength
 Whitbread plc is a hospitality firm
Weaknesses
 An expansion of business can cause a
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which has huge chain with over 2000
outlets in all over the UK.
 Whitbread plc has huge workforce
with more than 35000 whim are
expertise in skills and operational
activities and providing efficient
customer services (Hong, 2015).
 Whitbread plc has huge customer
base in UK as it is the leading
budgeted hotel and restaurant
company in UK market.
 Whitbread plc has better partnership
in UK and has good brand value.
bad effect due to poor management
planning and controlling.
 Opening a restaurant outlet or hotel in
new market can cause situational
problem in organisation.
 Exposure of new political and
economic condition can affect the
operation of the hotel in new market
which can leads to failure of the
expansion plan as well.
Opportunity
 The marketing team of Whitbread plc
can identify and do effective research
of the market which can be most
profitable for the expansion.
 Capitalising the availability of prime
high retail space in street to meet the
requirement for setting the business in
foreign market.
 Whitbread plc can maximise the rate
of occupancy in hotels and offer the
flexible and affordable pricing
structure.
Threat
 In order to expand their business in
new market internationally, the
business has to control their cost in
UK which can affect their selling
price and profitability.
 Threat of competition is increasing in
global market as well, which can
affect the expansion of Whitbread plc
(Frynas and Mellahi, 2015).
 Any uncertainty in the process of
expansion of the business can lades to
affect the business overall profit.
Referring to the above analysis, it can be state that cited hotel has effective brand image and
market share which will assist the hotel in enter in a foreign market. There are various
opportunity for Whitbread plc which can be taken as an advantage with the help if the
company’s strength to expand the business operation. In order to attract the customer,
Whitbread plc must prepare an effective plan for market research of the customer taste and
preferences of the customer. Whitbread plc can also use different promotional techniques
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which help in attracting more customers (Lehmann and Joseph, 2015). The marketers can
avail the strength of the Whitbread plc in order to overcome the potential challenge that has
to face in expanding the business in new market.
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Part 1/LO2
Evaluate entry to a selection of international markets and define the key success factors
In the current task, Whitbread is planning to expand in the Netherlands. Currently the
business is operating effectively in UK with providing services to customers at reasonable
prices. For entering into new market, below are the key criteria for selecting the appropriate
location for business to expand.
Key criteria and selection process that the company should use when considering which
international market to enter
Whitbread plc is a budget hotel and restaurant that provide efficient customer services in an
affordable price. Thus, it is essential for Whitbread plc to determine the international market
where the customers are demanding for budgeted and reasonable hotels. In this regards,
emerging economies are effective for Whitbread plc as a market for expansion their business
at global platform. Moreover, entering a foreign country is not an easy task, it require an
effective market research, proper planning and making strategies (Waldman and Jensen,
2016). Whitbread plc primary require determining their criteria for the expansion of business
operation of hotels in new emerging economies nation. Following are some criteria for
Whitbread plc for the expansion of the business operation.
Increase customer base: Whitbread plc has huge customer base in UK, the hotel require to
new pool of customer to enlarge the sales and increasing the customer-base for the
organisation. Maximising the customer base is one of the main criteria for Whitbread plc, as
the UK market can bring limited number of customers.
Profit maximisation: In order to remain competitive, it is important for any business to
increase their business in order to improve and enlarge the revenue and profit for the
business. Thus, maximization of profit is another main criteria for Whitbread plc.
Brand position at global level: Whitbread plc is one of the leading budgeted hotels and
restraint in UK, it has a strong brand positioning in the UK hotel market. With expanding the
business operation on international level will be an opportunity for Whitbread plc to position
its brand image globally.
Selection process for Whitbread plc
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Selection process for a company is the most complex part for the marketing team of
Whitbread plc. Global retailing entry evaluation is an essential task that includes 5 steps. The
five stages of selecting an international market for Whitbread plc are as follows:
Country Identification: It is first step of market selection process, in this stage different
market for Whitbread plc will be determine on the basis of the set criteria (Sousa and Tan,
2015). The evaluation for the country will based on the economic and political stability, GDP
rate, possible entry barriers, different government policies, market condition and currency
exchange rate. These factors are essential to evaluate, as it can affect the manufacturing and
service cost which leads to affect the profitability of Whitbread plc.
Preliminary screening: It is the second step of the evaluation process, which includes the
screening of different nations which is selected on the basis of the set criteria. Preliminary
screening is completed with the evaluating the external business environment of country that
involves the currency stability, currency rates etc (Baum, Schwens and Kabst, 2015). This
step will help the marketers of Whitbread plc to determine the expense of business in entry
process for the selected country.
In-depth screening: In this stage, minute data related to selected market will be gathered and
analysed to make different strategies and decisions, management of Whitbread plc will done
the in depth screening of the chosen nation . In this stage, the domestic market of the selected
countries will be analysed with the market, customer’ preferences and needs. Whitbread plc’s
marketing team require making apply marketing mix for the selected countries and on the
bases of the deep research, few countries will be selected.
Final selection: At this stage, the few nations have been short-listed on the basis of the aims
and goals of the Whitbread plc. The marketing team will evaluate the internal factors which
can affect the business operation and services of Whitbread plc (Ahmadjian, 2016). It
includes the competitors, suppliers, workforce etc. Whitbread plc will choose a final country
to enter before comparing it with some other similar markets. Whitbread plc has chosen
Netherland to enter for the expansion the business operation.
Direct experience: The final country selected to expand the business of Whitbread plc from
the evaluation of different factors has been completed. However, it is effective for the
Whitbread plc to have a direct experience of the market condition (Grant, 2016). In this
regards, Whitbread plc will send their marketing executives to Netherland in order to evaluate
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and analyse the market condition and either resources which will be required to provide
efficient services to the customers.
To have the proper analysis of the market condition, Pestle tool can be effectively used.
PESTLE helps to analyse the key factors that directly or indirectly affect the business
environment.
Political factors: There are many shifts in political conditions of the country. Netherlands
have effective trade control and tax policies. The regulatory framework is transparent and
productive that will shape business to bring effective innovation and adds to productive
growth. The fair working of national economy of Netherlands helps many businesses to enter
into such market.
Economic factors: Revenues in the Netherlands economy is expected to increase by 3% in
2019. The sharp increase in the number of guest increases the construction of new Hotels and
also increases investments from the potential investors. The potential growth of tourism
justifies the investment in enhancing large Hotels. In 2020, GDP growth is expected to
increase by 1.7%. In addition, labour scarcity might be problem as the wage growth remains
sluggish (Daniel van Schoot, 2019). In addition, the growing inflation would decrease the
consumer purchasing power. Thus, there are opportunities but stricter actions are to be taken.
Social factors: Netherlands have the high growth rate of tourism and there are possibilities
the number of tourist would increase. In 2017 and 2018, the number of tourist mainly
increased from 23% that is approximate of 26 million. The popularity of increasing tourist
creates the opportunities for much business to expand in Netherlands (Index of economic
freedom, 2019). Thus, socially Netherlands has the opportunity to invite many of the
businesses. The country also has the strongest links from Europe and beyond.
Technological factors: Netherlands is the key centre of global business network with the
advanced infrastructure that connects people through the mode of electronic data. Whitbread
can effectively use the mode of Internet and social media to attract customers. Initially,
Whitbread need to analyse the pricing strategies of the competitors that can help business to
enter into the new market.
Legal factors: Netherlands have clear plans and policies concerned with legal conditions of
the country. It is necessary for new business to have effective understanding of legal
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