International Marketing Analysis: Savoy Hotel's Global Strategies

This report provides a detailed analysis of international marketing strategies, focusing on the Savoy Hotel's potential global expansion. It covers key concepts of international marketing, the rationale for entering international markets, and various routes an organization can take, such as exporting, licensing, franchising, and joint ventures. The report evaluates the opportunities and challenges associated with international expansion, including market analysis, competition, and adapting marketing strategies to different contexts. It also discusses the key criteria and selection processes for entering new international markets, the local vs. global debate, and how the 4Ps (Product, Price, Place, Promotion) differ across international contexts. Furthermore, the report examines various international marketing approaches, compares home and international orientations, and assesses competitors. The analysis concludes with recommendations for how organizations like the Savoy Hotel should operate in an international context, emphasizing the importance of adapting the marketing mix to different international markets. This report is designed to provide a comprehensive understanding of international marketing principles and their practical application.

International
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Scope and key concepts of international marketing.........................................................1
P2. Rationale market internationally and describe the numerous routes in terms of an
organisation............................................................................................................................2
M1. Evaluation of the opportunities and challenges that occur during the expansion at
international level...................................................................................................................3
D1. Critically evaluate the international market context, considering how an organisation
should adapt their marketing strategies..................................................................................3
TASK 2............................................................................................................................................4
P3. Key criteria and selection process to enter in international market.................................4
P4. Different strategies to enter in market with its benefits and drawbacks..........................6
M2. Application of the market evaluation, entry strategies and recommendations...............7
TASK 3............................................................................................................................................7
P5. Overview of key arguments in local vs global debate.....................................................7
M3. Analyse the in which an organisation should adopt a global or local approach.............8
P6. How the 4P’s approach differs in a variety of international contexts..............................8
M4. Determine that how to adapt the marketing mix of company in different international
markets...................................................................................................................................9
TASK 4..........................................................................................................................................10
P7. Explain and analyse the various international marketing approaches organisations can
adopt.....................................................................................................................................10
P8. Compare home and international orientation and ways to assess competitors, outlying the
implications of each approach..............................................................................................10
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..................................................................................................................................12
D2. Produce a critical evaluation of how the marketing mix is applied to a range of
international contexts............................................................................................................13

CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
With the growing technological advancements, the organisations are developing and
growing their business into the foreign markets in order to increase the efficiency of productivity
and also to gain cost efficiency and this process is referred as international marketing (Samiee,
2020). The aim of the organisation to pursue international marketing is to expand their operations
and to gain the benefits of international market in terms of generating revenue, reducing cost,
hiring new talent etc. for the successful internationalization the management and marketing
department of the organisations play a key role in conducting market research to understand the
needs and wants of customers of new market and to bring modification sin the current functions,
organisation structure of the company to maintain cultural balance as that supports the
productivity and profitability within organisation.
The present report on international marketing is based on the Savoy hotel a largest hotel
chain of the hospitality industry of UK. The hotel is known for its outstanding product and
services to guest and is headquartered in central of the London. The report highlights scope and
key areas of international marketing and formulate the methods to enter international market.
The report also covers the selection process to enter new market and its key advantages and dis-
advantages. The elements of market plan, international marketing approaches are also covered in
the report.
TASK 1
P1. Scope and key concepts of international marketing
International marketing is an essential factor for every company which they want to expand
and grow in the long duration in the current situation which means that the trading products
which are developed in different countries. There are several key concepts related to the
international marketing like size of market and location which the company is planning to
capture, its customer taste and needs and also related to the several factors which are critical for
the company (Alshaketheep and et. al., 2020). In regard of this, to analyse and evaluate this,
companies need to add value towards the company for the long run and their benefit towards the
current profitability rate of company.
In terms of Savoy hotel, it is famous who operates in London since very long and it is
significant for the business to examine all the issues which are concerned with the international
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marketing as it is important and critical to increase the overall profitability and growth of
company. There are several factors which company needs to keep in mind before expanding their
business at the international market and also rectify things before making the actual process of
expanding that results as the enhancement of growth. By doing this, the hotel can opinion well
ahead among their competitors who are prevailing in the same market area and conditions. Along
with this, there are three key features of global promotion and all of them are discussed in detail
in terms of Savoy hotel: Home market extension: Here, the company expand in market which is known to
company as it is the home market only (Butkouskaya, Llonch-Andreu and Alarcón-del-
Amo, 2021). For this, Savoy Hotel tends to cross this phase knowingly so that they do not
have to worry about it. Multi-domestic extension: This concept relates with the expansion in the domestic
market. As Savoy has successful cross this stage and due to this, they do not have much
to worry about the present condition.
 Global Marketing: This concept of marketing related with the expansion of company at
the global level as it is in the different countries considering the home and domestic
country (Guercini and Milanesi, 2018). For this, Savoy hotel is at the stage and they need
to take every choice in careful manner as they can rise the success of company at several
times but it also leads to damage the value of company if not executed in corrective
manner.
P2. Rationale market internationally and describe the numerous routes in terms of an
organisation
It is significant for the company as they need to plan before expanding and for this they need
to do correct full investigation of all the issues that has possible to influence the operations of
professional in direct or indirect manner. For this, the Savoy Hotel is planning to expand and
enter in the international market and for this, they need to keep various things in mind that they
do not need to prove to be an adverse decision. In regard of this, there are several routes by
which the Savoy Hotel can enter into the international market and these factors are discussed as
below: Exporting: It is the mutual technique of global selling as it is old and tested method that
has the high achievement rate in economical market situation (Iacobucci and et. al.,
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2019). For this, Savoy hotel operate in the sector that leads to offer various facilities to
their clients and also it is not one of the greatest way by which the company can try to
enlarge at the global market. Licensing: It is also the old method from which the company leads to obtain licence to
run a commercial in dissimilar nations by compensating the nominal fee in regard of it.
The Savoy Hotel is preparation to enlarge as it is one of the best way to increase which is
previously made a decent image in souk that can be used in positive manner. Franchise: This method of international marketing is commonly used in present times as
it is having good success rate that leads to attract the mind-set of various entrepreneurs to
opt this method. As Savoy hotel is famous and also have the effective sales and revenues
rate by which they can opt this technique so that they can properly increase in the global
souk.
 Joint venture: It is unique and actual method of global promotion as here, the company
cooperate with another company which has effective brand image in market and it is also
in tendency too within the global market (Ingrasciotta and et. al., 2019). For this, Savoy
hotel is doing very well in national souk as they can go for it because it is useful for the
company to increase their profitability that can enhance and survive in long run.
M1. Evaluation of the opportunities and challenges that occur during the expansion at
international level
Company wants to expand at the worldwide souk then there are several opportunities and
challenges which are linked with it and also comes in regular basis to the company to deal with it
and also works in an effective and efficient manner (Kavoura, Kefallonitis and Theodoridis,
2019). For this, opportunities are that in which the Savoy hotel have an extended and large
market area to capture and also compared at the early stage. Further, the challenges which are
faced by company also has to face tough rivalry from the current firms that has already effective
situation and also placed in the same sector.
D1. Critically evaluate the international market context, considering how an organisation should
adapt their marketing strategies
The term international marketing is concerned with the actions which are used by company
to reach towards the embattled spectators and also leads to achieve their commercial in terms of
changing the business situation. Every company need to analyse the wants and needs of
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customers and also maintain the high performance by running towards the effective business. In
regard of Savoy Hotel which is large in size and also leads to offer effective marketing strategies
that support business in long run and also enhance the organisational efficiency and productivity
within the changing business environment.
Critical Evaluation: In case of the Savoy Hotel it is examined that there is huge scope for
international marketing which can help the company gain growth in UK as well as outside of the
UK border. The advantage of home extension marketing for Savoy Hotel is that it can help the
reduce the risk with expansion as it involves moving forward in the known market so there is
knowledge of effective marketing strategies which an be utilized. The disadvantage of this aspect
of international marketing is that it does to offer huge increase in profit of Savoy Hotel. The
advantage of multi-domestic extension in relation to international marketing at Savoy Hotel is
that it can help the company gain UK wide significance while the disadvantage is that it can
divert the company from international travellers arriving in UK who provide high revenue to
Hotels. The advantage of global marketing is that it an provide Savoy Hotel is that it can help the
establishment attract travellers from eastern hemisphere while the disadvantage is the high
market research and cost involved in such type of marketing From the critical evaluation it is
determined that the company needs to move forward with international marketing as each level
of global marketing provides some growth opportunities to the company.
TASK 2
P3. Key criteria and selection process to enter in international market
The organisation of company leads to focus towards the execution and enhancement of the
concerning business organisation and at the gloval level and it leads to support the suitable
company for acquiring the several benefits as it leads to used things for the enhancement of
incomes, market area and client base to enhance the sale of products (Kraak, Rincón‐Gallardo
Patiño and Sacks, 2019). For this, some steps which are executed by the administration for
ingoing into worldwide market are discussed as:
Key criteria process and determination cycle expand into global market
There are several methods and measures which are used by Savoy Hotel to expand into
international market. It is used by the connotation to produce their commercial into the particular
area as the key measures viewpoints which are used for the choice of country is:
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 Examination of Market: It is important that the suitable market is being investigated
with the suitable objective that the area or segment leads to impact the business in regard
of diversify their business which can help in order to restrict the negative impact of these
components over the company (Michaud‐Létourneau, Gayard and Pelletier, 2019). For
this, the hotel need to use the PESTLE factors or framework in order to analyse the
business condition and also help in regard of separating the business that leads to impact
the business. Rivalry examination: It is enormous that the confrontation that might be considered by
company in market and also can be investigated with the overall objective that leads to
promote significant methods and also pick by the company by undertaking the
perspective of customers. It also leads to empower the company to arrange prominent
factors and the position of Savoy hotel in market leads to increase by undertaking their
objectives that arrange success to some extent. Flexible channel: The diversified channel also need to be analysed which is primary in
terms of getting rough material from the suppliers and also reach towards the customers
in profitable manner (Primo, Gil-Saura and Frasquet-Deltoro, 2020). It is also helpful for
company to make the stock for company to have success by which company can reach
towards their targeted customers on time by having proper satisfaction. Analysing the interest: It is important for company to properly examine the business
environment and market conditions in an effective manner with the help of suitable
frameworks by settling down as per the needs of customers and also provide them
products according to their needs and preferences.
In relation to this, the steps of selection process are discussed as underneath: Marketing objective: The procedure of formulating method in terms of entering into the
international market leads to define the centre points to take entry within the international
market. In this context, the Savoy hotel leads to put emphasis to take entry in market by
having effective motive to enhance the market size. Parameter for selection: The savoy hotel lead to achieve and accomplish their overall
operations with the specific sector (Rizvandi, Tojari and Esmaili, 2018). For this, the
parameters should be obvious to grow the actual policy which is used by organisation to
accomplish all the relevant tasks with the objective of providing appreciated facilities.
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 Preliminary expenses: As per the screening of company, it has been analysed that the
management that all the tasks are completed by executing the effective decisions. For
this, they lead to identify the several aspects of market area to achieve growth. Short listing of market: By having complete screening steps of company, they need to
put emphasis towards the short listing of the suitable factors which are helpful regarding
the selection of market. In regard of this, there are different tasks which are performed by
the management and also tends to short list for the particular field.
 Start of commercial activities and evaluation: After analysing all the steps it has been
analysed by the company that the commercial actions are performed and also plays an
important role for Savoy hotel in regard of selecting the market area. Along with this, the
tourism sector exists at the places so that it put positive impact over the company.
P4. Different strategies to enter in market with its benefits and drawbacks
Exporting: It refers to the effective exporting in suitable manner which is used by the
company in regard of selling their products and concerning services which is beyond the local
market. In terms of the service sector, exporting depict the engagement in travelling services as it
is quite easy for the management to achieve high results by satisfying the travelling needs of
customers from one place to another (Rocha and et. al., 2019). In regard of this, the export
management tends to gain high results by analysing and understanding the needs of customers. Benefits: The economic value for the company is leads to enhance things by performing
the business into new market area. Along with this, the competitive market is being
developed in local market by developing the company at the international level. Drawbacks: The suitable rules, policies and regulations which leads to generate the
complex factors and also create barriers for hotel and also transfer the services in
different market area as the services are based on time.
Franchising: This factor is important as it is beneficial for company to expand at the
organisation at the international level. This is helpful for the management to complete their work
by providing franchisee as it is effective to take entry into the international market as the
franchisee helps the local authorities to work at the international market and for respective hotel
it leads to generate the benefits which results by enhancing the size of business (Sharma, Kumar
and Borah, 2017).
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 Benefits: It is related with the expansion cost and the company need to perform suitable
tasks in different market by completing the assigned work with full efficiency. Drawbacks: The suitable quantity which is capitalised in the franchisee factor need large
amount of bureaucracies and proper capital to complete the work.
Licencing: The term license helpful for company to achieve and manager their working in an
effective manner with authorised consent as it is useful to complete the job by handling the
overall permission. Further, all the tasks are managed by which the licensor needs to perform
work towards the management of task with the permission of company from the headquarter. Benefits: It is defined as the suitable tool which is helpful to perform all the task with
suitable chance and also used for making the income as per the obvious roles. It is also
quite easy for the management to take entry at the international market.
 Drawbacks: By undertaking the viewpoint of company, it has been analysed that they can
get better outcome by the fee to get license and also renew them over the years on the
grounds which is very high.
M2. Application of the market evaluation, entry strategies and recommendations
Savoy Hotel need to ensure that every task related to international marketing is completed
accurately by following the valuation criteria so that positive outcome is gained from
international marketing efforts of the company. The respective Hotel is recommended to conduct
market research to assess various opportunities and threats present in the market. This is justified
recommendation as it is in accordance with the valuation criteria to reach global market and it
will help the company build an effective international marketing plan to gain success on a global
scale (Shuradze, Bogodistov and Wagner, 2018). The Savoy Hotel is suggested to develop strong
understanding of the competitive landscape of the international hospitality industry.
This is helpful recommendation as the respective company will engage in international
marketing which creates distinguished brand image from the competitors and secure beneficial
position in the international hospitality market. Knowledge of business opponents will help the
respective firm gain successful results from international marketing efforts and attract consumers
from rival competitors. Another recommendation for the respective company is to adopt the
franchising strategy to enter international markets. This market entry strategy is suitable for the
Savoy Hotel as it helps the respective company minimize risk and increase chance of success for
the respective.
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This is because under the franchising strategy the franchisor has to take the risk of starting a
new outlet of the company in international market. The cultural knowledge of franchisor in this
strategy increases the chances of success of enterprise in international market as the franchisor is
familiar with expectations of consumers and ensures delivery of exceptional quality and goods
and services to consumers (Aras, Tezcan and Furtuna, 2018). The Savoy Hotel will be able to
successfully enter new market with less uncertainties by utilizing the franchising strategy.
Critical evaluation: Savoy Hotel can easy adopt franchising strategy to enter markets which
have high requirement of UK based luxury Hotels such as developing countries in Est Asia. The
advantage of this is that franchising can help the company easily enter the market with local
expertise which will improve marketing capabilities. On the other hand the disadvantage is that s
mistake by the franchisor can lead to destruction of brand awareness in the international region.
Licensing can be adopted by Savoy Hotel for multi-domestic expansion. The marketing strategy
is advantage in this case as the company will have the knowledge of UK market for effective
implementation of the marketing strategy. The disadvantage in this case is that licensing there is
no guarantee of revenues and Savoy can lose investment in marketing strategy. Finally
international exports can be used as a suitable marketing strategy to enter close markets in
Europe. This is advantageous as marketing used for international exports can be completed with
the help of intermediators. The disadvantage of this si that the loss of autonomy on
implementation of marketing strategies.
TASK 3
P5. Overview of key arguments in local vs global debate
With the internationalization there is the increase of the size of the business and which also
increases the managerial power of the management of the organisation in order to effectively
enter the global market. It is analysed that that organisations like Savoy hotel first analyse and
experience the local market in order to expand their functions and operations. As through this it
becomes easy for the marketers of the hotel to understand the basics requirements of
implementing into the local or international market (Ali and Anwar, 2021). There are different
ways to enter the international market and each has different approach and focus to concentrate
on the performance of the organisation in the organised manner. This is also useful in aiding the
organisation for the enhancement in the operations of the business in order to meet the customer
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requirement and current market dynamics. This is a difficult task for the Savoy hotel to
understand the whole market in depth. This results into the company increasing their market area
by delivering better and highly efficient operational activities.
In the same manner on another side local marketing limits the marketing area of the
enterprise and its management only in order to accomplish and execute the task at smaller base
area. It is also understandable that market control serves better system to deliver the products and
services of Savoy hotel to the customers that are limited in count. The lack of research,
investment and knowledge regarding the market has always acted as the drawback to the Savoy
as this is the reason due to which Savoy hotel comes across complexity in performing their
operations in the global market (Cateora and et. al 2020). Additionally, local areas are captured
and surrounded by the management of the Savoy Hotel which also reduces the brand value of the
Savoy hotel in hospitality industry thereby causing low sales.
M3. Analyse the in which an organisation should adopt a global or local approach
From the above discussion, it is analysed that Savoy hotel is using traditional marketing
techniques in order to attract their potential customers but now they are also investing their time
and efforts in creating a strong online presence which will help them in attracting large number
of customers without spending much cost. It will help the company in coping with the dynamic
environment of the industry as well.
P6. How the 4P’s approach differs in a variety of international contexts
In case of international marketing, it is important for the companies to manage their
business strategies effectively and efficiently. International marketing helps the company in
acquiring a large market share which is beneficial for the company in having competitors
advantage and in having higher profitability. Savoy Hotel uses different promotional, product
and pricing strategy which can help them in attracting customers and in having a loyal customer
base. The strategies for expansion and development of business used by the respective hotel is
given below:
Pricing strategy: It is important for the hotels to understand the customers and market are
highly price sensitive. It is one of the major factor which can influence the decision of the
customers. If the prices of a product are relevant with the value that the product is providing to
the customers, then the customers will buy the products and if the prices of the products are
higher than the value provided then the customers will not buy the products and the product will
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