International Marketing Report: Savoy Hotel's Global Strategy

This report provides a comprehensive analysis of international marketing strategies for the Savoy Hotel, focusing on its potential expansion into the Nepalese market. The report begins with an introduction to the hotel and defines key concepts in international marketing, differentiating it from domestic marketing. It explores the scope of international marketing, including imports, contractual agreements, and joint ventures, and discusses key concepts like international trade and closed-loop marketing. The rationale for international expansion, including foreign investment opportunities and competitive advantages, is examined, along with various market entry routes such as exporting, franchising, and acquisition. The report also addresses challenges like tariff barriers, ethical considerations, and political instability, while highlighting opportunities such as new relationships and market expansion. A critical evaluation of international marketing is presented, followed by a detailed discussion of market selection criteria, including preliminary and in-depth screening processes. The report concludes with recommendations for the Savoy Hotel's international marketing approach, emphasizing the importance of market understanding, marketing plan development, and customization.

INTERNATIONAL
MARKETING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
PART 1: LO 1..................................................................................................................................1
Introduction to the organization.............................................................................................1
Sources to define international marketing and the main differences to local marketing ......1
The scope and key concepts of international marketing........................................................3
Rationale for going international and various routes to market that Savoy hotel can adopt..4
Opportunities and challenges that marketing internationally presents to an organization.....4
Critical evaluation of international marketing........................................................................5
PART 2: LO 2..................................................................................................................................6
Key criteria and selection process that company should use when considering which
international market to enter...................................................................................................6
Market entry strategies along with advantages and disadvantages........................................7
Recommendations and critical evaluation of international marketing and strategies ...........8
TASK 2: LO 3..................................................................................................................................8
Covered in PPT ......................................................................................................................8
TASK 3: LO 4..................................................................................................................................8
Explaining and analysing in detail various international marketing approaches that company
can adopt.................................................................................................................................8
Comparing home and international orientation, their implications as well as ways to assess
competitors.............................................................................................................................9
Appropriate conclusion and recommendations....................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................12

INTRODUCTION
Marketing is the most important element or function in an organisation that is useful to
promote its services and products in a local or international market. It is essential to attract
customers in marketplace to sell maximum items or services that contribute in the profitability of
organisation (Papadopoulos and Heslop, 2014). The present report is in context to Savoy hotel
which is a popular hotel in London. While expanding its services in different countries, it faces a
lot of challenges that will be discussed in this report. The report will include a description of key
concepts related to marketing along with various routes or methods an organisation can adopt to
enter into new market. Various factors which can influence marketing plan of Savoy hotel will
also be determined in the present study. Furthermore, approaches of international marketing that
can help an organisation to expand its business will also be discussed in this report.
TASK 1
PART 1: LO 1
Introduction to the organization
The Savoy hotel is a luxury hotel is located in the strand in the city of Westminster in
central London, England. Established by the impresario Richard D'Oyly Carte with profits from
his Sullivan and Gilbert opera productions, it opened in the year 1889. It was the first in the
Savoy group of hotels and restaurants owned by Carte's family for more than a century. The
Savoy was the first luxury hotel in UK, introducing electric lights throughout the infrastructure,
electric lifts and bathrooms in most of the lavishly furnished rooms, constant cold and hot
running water and many other innovations. Carte hired Cesar Ritz as the manager and Auguste
Escofiier as chef de cuisine, they developed an unprecedented standard of quality in
entertainment, hotel service and attractive dining, attracting royalty and powerful or rich guests
or diners (De Mooij, 2015). The hotel became popular all over UK, but there is a great need for
expanding its business in various other countries to increase their profitability. The hotel is
planning to increase its business in Nepal which is a developing country.
Sources to define international marketing and the main differences to local marketing
International marketing is a process in which marketing activities are adopted to cater the
global or international market (Domestic and International Marketing, 2017). Generally, the
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organizations start their business within their home country. Once these business achieve success
they proceed their firm to a next level and becomes an international company where they seek to
enter in different markets in various countries. Therefore, it is essential for an organization to be
aware of rules and regulations of the country they are expanding into (Hakansson and et.al.,
2015). On the other hand domestic marketing is when commercialization of goods and services
are limited to the home country. There are various differences in international and domestic
marketing as described below -
Basis of comparison Domestic marketing International marketing
Meaning It refers to marketing within
the geographical boundaries of
the country.
It means the activities of
promotion, production,
advertising, distribution and
selling extend the geographical
limits of a nation.
Area covered Small Large
Government interference less Comparatively, high
Business operations Within a single country More than one country
Use of technology Limited Sharing and use of the latest
technology.
Risk factor Low Very high
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The scope and key concepts of international marketing
Scope of international marketing can be determined as below -1. Imports – Importing goods for an organization or brand works in a same way like as it
does for entire country. Organizations may purchase products so that they can resale it to
potential customer base in home country that they have collected with the lot of effort
and hard work. But often these companies take help from imports for their own
utilization, creation and improvement of the production line of the organization.2. Contractual agreements – Whenever organization moves to a global level, its scope of
international marketing exposes it to higher possibilities of doing a more profitable
business. The international business may make various contractual agreements with many
organizations in terms of co-production, licensing or technical assistance (Hult and et.al.,
2018).
3. Joint venturing – Joint venture refers to collaborative organization or business of two
different brands for a specific time period. This association also give rise to a new firm
that perform its business activities individually to achieve goals other than parent
companies.
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Illustration 1: Domestic and International Marketing
(Source: Domestic and International Marketing, 2017)

Key concepts
1. International trade – The concept of international trade becomes an important part of
organization's objectives when it enters into global market. The company needs to export
and import its resources or products to its customers and other branches as well
(Skarmeas, Zeriti and Baltas, 2016).
2. Closed loop marketing – It refers to continuously monitoring the response of customers
to the marketing methods or techniques. Knowing what customers expect and what they
are getting becomes more essential when companies grows along with its target market.
3. Targeting demographics – In order to increase marketing strategies, organizations
generally needs to target certain demographics. The success of any marketing strategy
depends on the targeted type of population and its characteristics, such as some
organizations target products just for cooler regions, some for females etc.
Rationale for going international and various routes to market that Savoy hotel can adopt
There are various benefits Savoy hotel can get by expanding its business in Nepal, these
significances of global expansion can be described as below - Foreign investment opportunities – Organizations with international activities can also
get benefits from lucrative investment opportunities that may not exist in their home
country. Competitive advantages – Organizations also select global expansion for gaining
competitive advantages over their competitors, for example businesses that expand in
markets where their opponent do not perform their business activities often have a first
advantage (Samiee, Chabowski and Hult, 2015). Access to talent – Another major significance of global expansion it the opportunity to
access new talent or skilled human resources. In many situations, global labour can offer
unique benefits to organizations such as Savoy hotel.
Various routes to enter foreign market
1. Exporting – It is one of the easiest method to enter into a foreign market, and hence most
of the companies begin their global expansion utilising model this approach. Exporting
refers to selling services or products in a foreign market or country that are produced or
sourced from the home country.
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2. Franchising and Licensing – Licensing and Franchising are two effective modes of entry
that can be used by an organisation to expand its business in an international market. This
approach refers to providing intellectual property to individuals who can start a same
business or firm with a same name in other country (Morschett and Schramm-Klein,
2015).
3. Acquisition – An acquisition is a transaction in which an organisation obtains control of
another company or firm by buying its stock, exchanging stock of its own or paying
owners a purchasing price in case of a private firm.
Opportunities and challenges that marketing internationally presents to an organization
Challenges
An organization can face various challenges in international marketing as described
below -
1. Tariff Barriers – These is a major challenge faced by organization in international
marketing, the tariff barriers refers to the duties and taxes imposed on imports. Marketers
of foreign countries finds it difficult to earn adequate profits while selling their products
or services in the home country.
2. Ethics and norms challenges – Ethics refers to moral principles, norms and standards of
conduct governing the behavior of an individual or firm. In different countries different
codes of conduct are specified that it essential to be considered by an organization while
expanding into a foreign country (Vincent and et.al., 2016).
3. Political Instability – The political instability is also a challenge or issue in international
marketing that can influence Savoy hotel while expanding globally. Every country has its
own political environment that can affect an organization while performing its business
functions.
Opportunities
1. New relationships – While establishing business in a new country an organization makes
new connections, these connections helps in developing long term business relationships
that is helpful for an organization to increase awareness and reputation in a market.
2. Market expansion – International marketing also helps in expanding a market, it helps an
organization to promote its products or services in various countries or foreign markets.
This promotion helps in attracting people in different countries all around the world.
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Critical evaluation of international marketing
International marketing is an effective approach for organization such as Savoy that is
planning to expand into Nepal. The company can use franchising and licensing method of
entering into a new market. As it is easy to promote a brand which is already popular, using a
same brand can be useful to attract customers in a new market but it is also an issue for the
company to understand the trend, culture and needs of potential customers in a new or foreign
market. There are some marketing strategies that Savoy Hotel adopt in order to so that they can
understand the international market and maximize the opportunities in the international market
which are as follows-
Know the market- When company plan to expand there business in global market, it is
very important that they should adopt global marketing strategies so that organisation can
understand the customers expectations and demand.
Developing Marketing Plan- Succeeding in the global environment does not only mean
simply changing the language but it needs a systematic planning to achieve success in the
market.
Customize the approaches of marketing- This is also the best way to enter in the global
market, When organisation decide to expand there business in the international market, they
should have to customize the approaches of marketing.
PART 2: LO 2
Key criteria and selection process that company should use when considering which international
market to enter
The international marketing entry process consists five stages and its main purpose is to
identify most suitable market that can offer the best opportunities for products or services of an
organization. The key criteria and selection process Savoy can use to determine a most profitable
market can be described as below -
Stage 1 – Identification of the country
The first step is to identify the country, in this stage Savoy can analyse political
environment, culture, language or religion that is similar to the home country. It can play an
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important role in choosing most favourable market for the business (Demangeot, Broderick and
Craig, 2015).
Stage 2 - Preliminary Screening
This is second stage that includes ranking or scoring countries on the basis of macro-
economic factors such as exchange rates, stability or currency, level of domestic consumption
etc. It can help an organisation to move forwards with the decision or change it.
Stage 3 – In -depth screening
This is the third stage of selecting a foreign market or country to expand the business, it
includes analysis of detailed information related to the targeted market. This stages involves
micro elements that can affect the business functions or operations. It involves pricing of the
products or services, target segmentation, positioning etc.
Stage 4 – Final selection
This is the final stage in which organization chooses the best option among various short
listed potential countries. Managers reflect on strategic goals and look for a best match in the
nations. The organization looks at close competitors and similar domestic businesses in a
particular country and avoid entering a market having much competition (Kotabe and Helsen,
2014).
Market entry strategies along with advantages and disadvantages
Market entry strategy refers to a planned distribution and delivery technique of services
and products to the new target market. It is a plan that helps an organization to enter into a new
market such as a new country to operate its business the various types of market entry strategies
can be determined with differences among them
Entry strategies Advantages Disadvantages
Acquisition Saves time and overcome
entry barriers or challenges
Costly and issues of
integrating two firms or
organizations
Joint ventures Marketing and technological
unions can exploit large of
small companies, Distribute
risk
Danger of value on one
organization reduced overtime,
Potential for conflict in
operations between
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organizations
Licensing from others Reduced financial risk and
rapid access to technology
Lack proprietary technology
and related skills will be
dependent on licensor
Internal development Using existing resources,
Avoid acquisition cows mainly
if not familiar with product or
market (Stöttinger,
Schlegelmilch and Zou, 2015).
Uncertain prospects and Time
lag
Licensing to others Rapid access to market and
low risk or cost
Dependency on license
Recommendations and critical evaluation of international marketing and strategies
There are many ways to evaluate the marketing strategies which are as follows-
Urgency- This means what the importance of product at present time.
Market size- This means the size of market that how audience are active in purchasing or
using the services of organisation.
Potential pricing- The willingness of customers to pay the highest price of the products.
Differentiation of Offers- This means the uniqueness in the product style and quality
compare to competitors.
Savoy hotel can identify a market or country that has a stable political environment,
healthy culture, languages and religions. There are many options for Savoy Hotel to use and
expand ion the global market like direct exporting, Franchising, joint venture etc. The best
strategies for Savoy hotel is to make joint venture. The country should also have less
competition in terms of hotelier services. In order to select the best country analysing economic
conditions can also be useful such as hotel services are attracting medium or upper class people
in a market (Knight and et.al., 2015).Therefore, The hotel group can collect information about
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the countries using surveys and online websites to understand the trends, culture and demand of
the people.
TASK 2: LO 3
Covered in PPT
TASK 3: LO 4
Explaining and analysing in detail various international marketing approaches that company can
adopt
There are two main internal approaches that Savoy Hotel will use to expand its business
in global market. These approaches are very helpful for organisation to grow its business in
global market.
Here are the approaches of International marketing which are as follows-
Centralized Approach- In this approach, the team of marketing at headquarters makes
most of the decision related to marketing as well as they are responsible for planning and
accomplishing all the marketing programmes. In this approach, company has to develop in-house
capabilities of marketing as well as scalable processes (Centralized and Decentralized
approaches, 2016). This approach has slower growth as compare to other, so it is very important
to remove all the growth and development obstacles. This approach is suitable when the
department of marketing of hotel is highly competent and has experience working with global
markets. For example, centralized approach are mostly used in military because they have
centralized organisational structure.
Decentralized Approach- In this approach, entire marketing functions as well as decision
making are fundamentally pushed out into the filed. The main purpose of adopting decentralized
approach is to support as well as motivate the local staff of marketing and respondents. The
materials of marketing are often produces as a template that local respondents or marketer could
utilize as a beginning point for translation as well as localization. Savoy Hotel will use this
approach it is much better as compare to centralized approach because it provides some control
over how the brand of hotel is pictured. This approach is very effective when services of
organisation in heavily regulated sector and it is also good for Savoy Hotel because they have
limited resources. For example, in fast food franchises chain.
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Comparing home and international orientation, their implications as well as ways to assess
competitors
Market orientation is an organisation's philosophy that focused on discovering as well as
meeting the needs and desire of customers by its product mix. Home orientation is quite different
from international orientation because customer needs and desire are totally different form the
customers living in home country (Schmid, Grosche and Mayrhofer, 2016). Heavy market
research is required in order to understand the needs and desire of customers of global country
whereas the market research is not so strategic for customer of home country because customers
are understandable and known by the hotel. Addition to this, international orientation is costly
and expensive as compare to orientation in Home County.
There are many ways to access competitors in international market are as follows-
 By understanding the product and price of competitors are offering.
 By launching or introducing innovative services and complete unique services as
compare to competitors.
 Find the base of customers and understand the level of expectations of customers before
launching products and services (Kaufmann, Czinkota and Zakrzewski, 2015).
Appropriate conclusion and recommendations
It can be concluded from the above report that hotel is expanding its business in
international market (Nepal). There are two approaches studied above and it has been identified
that decentralized approach is the best as well as most suitable one for Savoy Hotel. In addition
to this, ways to access to competitors in global market was also included.
Recommendations
 Savoy Hotel should perform a deep drive due to diligence. Thus, it is important for hotel
that they should understand the market and then target the customers. They should use
the too STP so that they can understand the international market and maximise the
opportunities in the international market.
 They should use the tool of SWOT analysis and make overcome the weaknesses and
threats so that they can understand the international market and maximise the
opportunities in the international market.
 They should develop a strategy and a systematic business plan and in the plan they
should consider the important factors like culture, traditions, background and income of
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