Qbic Hotel: Comparing International Markets and Entry Strategies

This report provides a comprehensive analysis of Qbic Hotel's global marketing strategies, focusing on its potential expansion into international markets. The report begins with an overview of the company and the triggers that influence its decision to enter global markets, such as growth and profitability, economies of scale, risk diversification, and resource acquisition. It then utilizes the PESTLE analysis to compare the Indian and Japanese markets, evaluating political, economic, social, technological, legal, and environmental factors. The report further explores various market entry methods, including licensing, acquisitions, partnerships, and joint ventures, recommending partnership and joint ventures as the best options for Qbic Hotel's entry into the Indian market. Finally, it outlines potential marketing strategies, including advertising, public relations, sales promotion, personal selling, and direct marketing, to enhance Qbic Hotel's success in new international markets. The report emphasizes the importance of a well-defined marketing strategy and communication mix for achieving marketing objectives and goals in international expansion.

Report

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................4
Overview of the company............................................................................................................4
Triggers that influence the company to move into international markets...................................4
Using global marketing model compare two international markets............................................5
Methods of market entry used by Qbic Hotel to enter Indian market.........................................7
Potential marketing strategies......................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

EXECUTIVE SUMMARY
The term marketing is defined as the actions of the company to sell and promote the
products that also involve advertising and market research. It has been found out that there are
various factors that influences company to move at international level. There is various
difference between international market on India and Japan. It has been defined that different
types of methods available in market that company can uses to enter into new market. The
availability of communication mix as marketing strategies help business to reach at target
consumers.

INTRODUCTION
Global marketing refers to the method of adjusting marketing strategies of the firm to
adapt the conditions of other countries. It helps to promote products or services at international
level. The Report is based on Qbic Hotel. It will outline triggers that influence firm to move into
global market, marketing entry strategies, comparison of international markets, potential
marketing strategies etc.
MAIN BODY
Overview of the company.
The Report is based on Qbic Hotel. It is situated in London, United Kingdom. It is a 3.5
star hotel with restaurant. It offers the facility of different rooms like double room, standard
room, superior double room etc. The hotel is having nearly 171 rooms. The hotel is arranged
over 5 floors. It also provides other facilities like self parking, car charging point etc.
Triggers that influence the company to move into international markets.
There are various factors that influences an organisation to move into international
markets. These are as follows -
Growth and profitability -
One of the major factor that motivates firms to enter into international market is growth
and profitability. A lot of firms turn to global markets for growth. Introducing new products in
new market helps to increase customer base, sales and revenue. This will also help to improve
profitability of the company (Perera, 2017).
Economies of scale -
Firms enter into new market because it helps to expand the business that helps company
to achieve economies of scale. International approaches provide economies of scale while
sharing risks and cost between markets. Economies of scale happens when unit cost of the output
declines as volume of production increases.
Risk diversification -
Entering into international market helps firm to diversify the risk. Offering products in
various countries help to reduce the exposure of company to political instability, economic
instability within the country. It will helps to protect the business from different types of risks.
Uniqueness of product or service -

The product with differentiated features helps business to compete with other companies
in foreign market and enjoy massive options throughout worldwide marketplace.
Spreading the cost of research and development -
Through entering into a new market, firm is able to rapidly cover the cost incurred on research
and development. As a result of large marketplace with regard to goods including high expenses
related with research and development. It supports speedy recovery of such type of expenses.
Resources and ideas -
Due to non-availability of resources in home country or at better competitive rate firms
turn into global market. Also firms move at international level to gather different ideas in various
lifestyle of different countries as well as to broaden the workforce. Resources involves financial
resource, material resource, human resource etc (De Mooij, 2019).
Employee's -
All the businesses requires well trained and skilled employee's. Due to this, companies
move into international markets to find alternate sources of labour to perform various functions
of the company.
Increase market share -
Another factor due to which firms proceed at international level is to increase the market
share. Mostly organization moves into another country because it helps firm to increase the sale
of products. As a result it also assists firm to increase market share.
Using global marketing model compare two international markets.
Qbic Hotel will use PESTLE analysis to compare two international markets that are
India and Japan. PESTLE analysis is one of the major global marketing model that helps
organisation to identify, evaluate and monitor various types of factors that are existing in
macro environment. Company cannot fully control the impact of these factors. Qbic Hotel
will use PESTLE model to compare two international markets.
Basis India Japan
Political One of the major factor that
may influence the decision of
company to enter into market
There are various trends due to
which political stability of the
country is better than other

of India is political stability.
The stability of government in
India and predictable policy
framework has made the
country attractive for firms.
countries. It includes social
equality, commitment to
international affairs etc.
Economical One of the factor that affects
the decision of company to
enter into new market is rate of
inflation. The rate of inflation
in India was 3.43 % in 2018.
The rate of inflation in Japan is
0.30 % in 2018. Therefore, it
will be cheaper for the
company to offer products and
services in Japan.
Social The population of India in year
2018 was nearly 1.35 billion.
Further, the country also offer
cheap labour that provides
great opportunity to firms to
enter into the market.
Accessible and affordable
labour has motivated the firms
to start their operations in
India.
The population of the country
in year 2018 was estimated at
126.5 million.
Further, people living in the
country mostly prefers
Japanese firms as compared to
international firms. Therefore,
it makes difficult for company
to start business in Japan
(Asongu, Koomson and
Tchamyou, 2017).
Technological It is the third most
technologically advanced
country in the world (De
Mooij, 2018).
It is the most technologically
advanced country in the world.
People are well-known as
learning and creative searching
to use modern technologies.

Legal There are various laws that
governs the business of
companies. To enter into
Indian market, companies are
required to follow Companies
Act 2013, Employee State
Insurance Act 1948 etc.
Company is required to follow
various laws related with
working time for labour. The
country has adopted the
principle of 40 hours per week.
Environmental The country is facing various
environmental challenges such
as water and air pollution,
diversion of consumer waste
into rivers etc.
Japan is environmentally
sustainable and responsible
nation. Waste management is
one of the major practice that
is adopted which is one of the
biggest issue in Japan. Japan is
under pressure to reduce the
environmental pollution and
waste controls.
Methods of market entry used by Qbic Hotel to enter Indian market
Licensing-
It is considered as sophisticated arrangement where company have rights to use of
services and products to another business (Musso and Francioni, 2014). Licensing is one of the
methods that can uses by organization to enter into new international market that is India. It is
very useful technique or strategy when purchaser of license relatively has large market share in
market where they want to enter. Licences will be for production or marketing licensing, in
simple words, licensing is kind of business arrangement in which organization give permission to
other firm to manufacture their goods for particular payment. In this mode of entry, firms sign
contracts with other businesses that called licensees which allow other companies to legally sell
products or services to organization
Acquiring organizations-

Business acquisition is one of the best modes company can uses to enter into market, it
includes taking over firm that already has market share, which makes it easier for Hotel to find
place in market. Speed is essential in this case, since workers will be retrained and replaced
swiftly before competitors react. Acquiring managing interest in foreign firm provide company
ownerships of business that is established and well known in market.
Partnering-
It is almost essential when company enter into international or new market, it is required.
It takes variety of methods from simple marketing arrangement to sophisticated plan alliance for
providing services (Ang, Benischke and Doh, 2015). Partnering is legal form of business
function between two or more companies who get ready to share profits and management. It is
useful plan in those markets where culture, both social and business, is practically different than
company own as local partners bring local market contacts, knowledge and select wisely
consumers. When Qbic hotel use this market entry mode, they can continue to permit other firm
to operate their management in behalf of main owner, it permits firm to benefits from their
experience, knowledge and connections with all stakeholders.
Joint ventures-
It is one of the most famous modes of market entry in which two organizations combine
their businesses and resources to sell its products. Joint ventures allow company with partner
experienced into international market, these partnerships will be difficult to handle and needed a
splitting of profits. It is specific form of partnership that includes creation of third independently
or well managed firm. According to this mode, two companies agree to work together in Indian
market, either geographic and create another firm to undertake this. With this method, Qbic hotel
will share their profits and risks normally with their new partner equally.
Evaluate the best method of entry-
Partnership and Joint venture are one of the best options for organization, that they can
use to enter into new market like India. It makes easy for Qbic hotel to established and start up
their business in new place through other company who had well managed and reputed image
within it. It helps to increase productivity and profitability of business rather than before; it also
caters opportunity to improve management effectively.

Potential marketing strategies
Marketing strategies is all about organization marketing objective and goals combined
into one comprehensive plan, it assures greater success of business into new international
market. The business executive of company creates effective and successful marketing strategy
with the help of conducting market research (Ahmed and et.al., 2014). Marketing department
focusing on appropriate and suitable product or communication mix so that they can gain high
amount of profit.
Communication mix is one of the best marketing strategies, it refers to particular
methods uses to promote business products or company to targeted consumers. It is set of five
elements that provide benefits to Qbic hotel as when they use it to gain better growth and success
in new market.
Advertising-
It refers to any paid advertisement of services, products or ideas by identified sponsor or
company. When hotel enter into new market, they have to attract consumers towards their
business which is quite essential for them (Ali, Ilyas and Abdul Rehman, 2016). They can
advertise in number of methods such as radio, newspaper, magazines, social media sites and
billboards. It is very effective way that firm uses to reach large number of consumers, but it is
quite expensive as well.
Public relations-
It is another element of communication mix; it refers to area of promotion that includes
creating good connection with media and building up relations who are interested in business.
Public relation come in hand when business trying to defer attention from unfavourable things
relating to business.
Sales promotion-
It refers to short term incentives organization offer related to their services or products.
Sales promotion is effective form that Qbic hotel will uses to grab the attention of consumers
who will be on fence when it brings to making purchase as it enhances people with discount
offers.
Personal selling-
This element integrated with direct marketing components; organization make uses of
sales force that is very essential to consider this element distinctly. Personal selling is where

company use people to sell their products, they select highly trained applicants for this procedure
after meeting face to face with consumers.
Direct marketing-
It includes highly targeted information or messaging that sent to target market or to very
narrow consumer (Purcarea, Gheorghe and Gheorghe, 2015). Direct marketing is one of the best
communication mix elements that Qbic hotel can use to promote their services in new market.
With the help of this strategy business will assure to gain success and growth into international
market.
CONCLUSION
From above, it has been concluded that Qbic hotel operate their business effectively with
skilled labour. Growth and profitability, risk diversification, uniqueness of service or products,
employees and other triggers influence organization when they move into international market.
PESTLE analysis is one of the best global marketing models that uses to compare two global
markets and evaluate which one is best for company to enter. Furthermore, Joint venture and
partnership is great and suitable method of market entry that company uses to enter into new
market. Communication mix elements give benefits to business as they can consumer attention
rather than before.

REFERENCES
Books and Journals
Ahmed, R and et.al., 2014. The communication mix in pharmaceutical marketing. The Pharma
Innovation Journal. 3(5). pp.46-53.
Ali, M., Ilyas, M. and Abdul Rehman, C., 2016. Impact of consumer centric marketing mix
elements on consumer buying behavior: an empirical investigation in context of FMCG
industry of Pakistan. Kuwait Chapter of Arabian Journal of Business and Management
Review. 33(2592). pp.1-13.
Ang, S.H., Benischke, M.H. and Doh, J.P., 2015. The interactions of institutions on foreign
market entry mode. Strategic Management Journal. 36(10). pp.1536-1553.
Asongu, S.A., Koomson, I. and Tchamyou, V.S., 2017. Financial globalisation
uncertainty/instability is good for financial development. Research in International
Business and Finance, 41, pp.280-291.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
De Mooij, M., 2019. Consumer behavior and culture: Consequences for global marketing and
advertising. SAGE Publications Limited.
Gollnhofer, J.F. and Turkina, E., 2015. Cultural distance and entry modes: implications for
global expansion strategy. Cross cultural management. 22(1). pp.21-41.
Musso, F. and Francioni, B., 2014. International strategy for SMEs: Criteria for foreign markets
and entry modes selection. Journal of Small Business and Enterprise Development. 21(2).
pp.301-312.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Pongelli, C., Caroli, M.G. and Cucculelli, M., 2016. Family business going abroad: the effect of
family ownership on foreign market entry mode decisions. Small Business
Economics. 47(3). pp.787-801.
Purcarea, V.L., Gheorghe, I.R. and Gheorghe, C.M., 2015. Uncovering the online marketing mix
communication for health care services. Procedia Economics and Finance. 26. pp.1020-
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Online
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