Strategic Marketing Report: Qbic Hotel's Romania Market Entry Plan

This report provides a strategic marketing analysis for Qbic Hotel, focusing on its expansion into the Romanian market. It begins with an executive summary highlighting the competitive landscape and the introduction of a Club Membership Card to enhance customer loyalty. The report delves into a PESTLE analysis of the Romanian market, evaluating political, economic, social, technological, legal, and environmental factors. It then examines three market entry modes—exporting, licensing, and joint ventures—recommending a joint venture strategy for Qbic Hotel. The report further explores market segmentation and targeting concepts, followed by an application of Porter's generic strategy to assess the company's performance and outcomes. The report concludes by summarizing the key findings and recommendations for Qbic Hotel's successful market entry and growth in Romania.

STRATEGIC MARKETING

EXECUTIVE SUMMARY
Due to high competitive market, today every business want to enhance their
performances in different areas of the world. In this way, new services that is Club Membership
Card to loyal customer enhance at workplace of Romania by Qbic hotel. They are assessing
whole market to determining their performances at workplace so that business can take to make
profits at workplace. Report analysis external part of the market so that the company measuring
their performance to attain profitability at workplace. Further, porter generic strategy
demonstrate effective results to analysis organization performance and outcomes for ascertain
results and performance.

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
1. PESTLE analysis within Romania market...............................................................................4
2. Three modes of market entry and recommend most appropriate one......................................7
3. Concepts of market segmentation and targeting......................................................................9
4. Porter's generic strategy.........................................................................................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................17

INTRODUCTION
Strategic management determines various element in which the company can make
effective results and outcomes at workplace. It is very important to determine high profits and
revenue at workplace (Haimes, 2015). In this aspect, different activities are ascertain at
workplace through every business will achieve their competitive advantages at workplace. There
are different types of marketing element in which organization can take roles and responsibility
to deals with different situations. Present report is based on Qbic hotel which is SME
organization in UK market. They are providing different types of hospitality services in various
parts of country. Now they want to increase their operations through establishing market in
Romania. In this aspect, they are demonstrating element which assist to make profits and
outcomes at workplace. For establish operations in new market, report covers PESTLE analysis
which create impact on the business performances when they are enter in new place.
Furthermore, it also includes market entry strategy through the business will achieve competitive
advantages at workplace. Moreover, it demonstrate Porter generic strategy through the company
can easily expand their operations in new areas.
MAIN BODY
1. PESTLE analysis within Romania market
In order to enhance operations and services within the Romania market, PESTLE
analysis create impact on the business operations in effective way. It demonstrate external factors
within the new market that create impact on the business performances which expand operations
and outcomes in the positive element (Nong, Sun and Li, 2013). This analysis examine impact on
Qbic hotel performances when they are introducing their new service within the market. The
company can establish their operations to make effective results through determine new services.
They can enhance operations through establish service Club Membership Card to Loyal
Customer (Bhattacharjee, Roy and Bandyopadhyay, 2015). There are various factors which
create impact on the performances that are as follows:
Political factor
Within the Romania market, there is multi party domestic system, so that it create major
impact on the business performances (Lee, Son and Park, 2013). Political party charges very
high taxes so that Qbic hotel need to follow all rules and regulations. In this way, they can easily
capture the whole market through analysis business and profits. Due to high taxes, the company

need to expand their operations at very high price so that it create major impact on the company.
As results, it generates adversely impact on business operations (Peng, Chu and Zhou, 2015).
The Romania has low political risk so that the chose company can easily expand their operations
and outcomes at workplace.
Economic factor
In Romania market, there is positive impact on capital market. This is because, low
exchange currency rates so that it create major impact on the business performances. In this
aspect, Qbic hotel is highly affected at workplace of the company. In this way, the company can
sell their new services at low cost so that it will assist to enhance profits and revenue at
workplace (Choudhary, Mohanty and Singh, 2016). In addition to this, in the country strong ad
stable economic growth so that the business will easily develop their outcomes. Club
Membership Card to loyal customer assist to gain competitive advantages at workplace that
create positive working environment.
Social factor
In Romania market customer taste and preferences are change day by day so that it create
major on the business performances. This is because, it is ethnic composition nation in all over
the world. Within the market, customer taste and preferences are take place which determines
impact on the business outcomes (Yeh, Yang and Sun, 2015). This is because, currency effect
create impact on outcomes due to changes in market elements. Qbic hotel need to perform
functions and operations through assess market demand and operations in effective way. With
the help of, social factor the company can identify potential impact on the company when they
are establish new service that is Club Membership Card to loyal customer. The cited firm need to
analysis customer demand so that market share can be enhance at workplace easily (Witt, Brooke
and Buckley, 2013). It will assist to make high profits and outcomes through serve services
according to customer demand. Lack of diversity in the composition which restricting policy
movement within the country. The country is forced by communist party to make effective
results within nation.
Technology factor
In Romania technology is not effective so that Qbic hotel can not easily expand their
operations to determine profitability at workplace. In this way, manufacturing and supply
determine impact on the business operations. In this aspect, the cited firm unable to establish

operations and profitability that make positive results and performances at workplace. With the
help of technology factor, the cited firm expand their operations in new market (Shigenobu,
Noorzad and Senjyu, 2016). Service of the business determine impact on customer who are
regularly use services of hotel such as business man, students and many other people. It creates
adverse impact on the business and its performance to demonstrate effective results at workplace.
Legal factor
Legal factors are demonstrate outcomes in Romania which assist to make high profits and
outcomes. In this way, Qbic hotel need to follow all rules and regulations. It makes positive
results to ascertain outcomes. Customer duty, and many other element require create positive
results and performances at workplace. It determines effective result to expand operations
through following rules for Club Membership Card to loyal customer. In addition to this, the
company can make high results which make to determine performances to expansion of the
company in Romania.
Environment factor
Environment factor are demonstrate outcomes to ascertain results at workplace without
harming to business activities. In this way, the chosen firm has responsibility to demonstrate
outcomes and positive results at workplace of Romania. With the help of such rules, Qbic hotel
can easily make profits through protect their business in effective manner. Through ascertain
effective results, it is essential to make profits and positive results. Environment results also
make positivist to demonstrate effective results and performances. In this aspect, Club
Membership Card to loyal customer service enhance outcomes and performances at workplace.
Opportunities and threats for Qbic hotel
Opportunities Threats
 Attract regular customer
 Enhance new technology
 Make high profits with introducing new
services
 Changes is customer requirement
 Enhancement of other hospitality
businesses
 Regulations and policies

2. Three modes of market entry and recommend most appropriate one
There are different modes of market entry i.e. exporting, licensing and joint ventures that
could be adopted by Qbic hotel in regard to enter in Romanian market with its new service of
offering club card membership to attract loyal customers towards firm which are as follows-
Exporting Licensing Joint venture
Positive Through
exporting the
products or
services to
other countries
firm need to
make no
additional
investment just
they need to
enhance its
reputation in
that particular
country and
thus enhances
its brand
popularity so
that order
could be
obtained from
customers of
that country.
with the help
of license,
organizations
are able to
operate in
foreign market.
Company
when aim to
enter into any
foreign market
requires
licenses so that
they can obtain
effective
advantage and
thus expand its
operations in
market.
Through
carrying out
joint venture,
one business
needs to
collaborate
with other
similar
businesses so
that they can
jointly carry
out the
business
operations in
foreign market.
Negative Through carrying out
exporting it impacts
the country's resources
Through providing
licensing to different
companies in regard to
Through mergers or
joint venture major
negative aspect is that

as they are going out
into another country.
Thus, it will lead to
decrease in job
opportunities for
people living in the
country.
enter into nation and
provide them license
affects other similar
businesses operating in
the country.
it affects the business
operations.
 Exporting- Such process is being adopted by Qbic hotel that helps in directly selling their
products within other countries. However, such method has been adopted by businesses
from several past times when they aim to expand its operations into foreign market
(Coskun, 2000). Through exporting the products or services to other countries firm need
to make no additional investment just they need to enhance its reputation in that
particular country and thus enhances its brand popularity so that order could be obtained
from customers of that country. For instance, both small and big businesses carries out
exporting method as it is helpful for them to raise their performance in market. Also, in
terms of entering into international market, firm uses exporting method of entry which
proves useful for them to promote their products or services (Cravens, 2005). Licensing- Further, licensing is another market entry mode and thus requires business to
obtain licenses before entering into any other foreign country. However, in regard to this,
company needs to obtain trademark, patent, copyright etc so that proper licensing should
be attained. Licensing requires certain investment as firm needs to obtain them by paying
fees decided by government (Doole and Lowe, 2001). Further, with the help of license,
organizations are able to operate in foreign market. Company when aim to enter into any
foreign market requires licenses so that they can obtain effective advantage and thus
expand its operations in market. Through licenses it helps business to produces more
number of products or services and thus overcome financial risk or risk of failure.
 Joint venture- It is another market entry mode that helps business to enter into foreign
market. Through carrying out joint venture, one business needs to collaborate with other
similar businesses so that they can jointly carry out the business operations in foreign
market. It provides them chance to enhance their market share and profitability so that

best results can be attained. Further, it also helps in providing chances of product
development and influence customers towards firm (Percy, 2002). It also provides
opportunity for firm in regard to jointly collaborate with businesses and thus use their
technology so that innovative products could be produced in market.
The most appropriate market entry strategy that should be adopted by Qbic hotel is Joint
venture which helps them to collaborate with another hospitality firm of similar nature and size
so that they can offer attractive schemes and offers to customers (Proctor, 2014). Thus, using
joint venture entry mode is essential as per the regulations of Romanian government so that they
can start their operations in Romania. However, providing club card service would help in
influencing loyal customers towards firm and raise its sales and profitability.
3. Concepts of market segmentation and targeting
Market segmentation is considered as the strategy that helps firm to segment its market
into different parts. However, business distinguishes the whole marketplace into smaller sub
groups and possesses similar characteristics. In regard to this, following are the different types of
market segmentation such as-
Geographic
segmentation
Demographic
segmentation
Psycho
graphic
segmentatio
n
Behavioural
segmentation
In such
segmentation,
Qbic hotel
could break
the target
market in
different terms
such as
climate,
density and
market size.
However,
Further, it is
another part of
segmentation
and thus Qbic
hotel segment
its market on
the basis of
different
factors such as
age, gender
and income
etc. Thus, it
Moreover,
such factor
is another
part of
segmentatio
n that is
being used
by various
companies
and thus it
involves
different
Moreover, it also
helps in separating
the market upon
different basis i.e.
behaviors and thus
customers are
attracted towards
Qbic hotel in regard
to improve the
buying behavior of
Romanian
customers

businesses
could refer to
the
segmentation
criteria as per
the density of
population
living in the
country so that
hotel could
expand its
chain through
collaborating
with
Romanian
hospitality
firm in
Romania (Lee
and Staelin,
2005). It is
because firm
believes that
customers
could be
attracted when
they carry out
the business
functions and
thus set
different
parameters so
helps cited
organization
to operate its
functions and
influence
income class
within
demographic
factors. Qbic
being an small
business
enterprise
carries out its
functions for
medium class
travelers and
thus provide
them best
quality
services in
regard to
influence
them and
satisfy their
needs (Leisen,
Lilly and
Winsor,
2010).
factors such
as lifestyle,
interest and
opinions so
that
customers
could be
attracted
accordingly.
Each and
every
individual
possess
different
perception
from similar
product or
service
which is
being
served in
large market
(Lu and et.
al., 2000).
Qbic hotel
possess
wide
business
opportunity
in Romania
market and
(O'Driscoll and
Gilmore, 2009)

that it impact
upon
marketing part
of firm.
thus
provides
club card
facility for
its loyal
customers
and thus
influences
them to
choose the
hotel for
staying.
Targeting is considering as the process through which firm could target loyal customers
towards firm. However, it is essential for firm to Qbic hotel to identify the needs of target
consumers and then adopt effective strategy such as providing the attracting offers and discounts
such as club card to influence loyal customers towards firm. Cited organization uses
demographic factors such as income and thus attracts businesses and weekend travelers who are
regularly visiting Romania for relaxing and business purpose (Tasso, 2011). Thus, Qbic attracts
such type of customers and thus provide them best quality services so that sales and profitability
of firm could be increased. However, business in small medium enterprise and thus it identifies
that firm is attracting medium class people and thus offer them club card facility so that they
could be retained for long term within firm. It has been recommended in regard to reach target
customers, business should use different social media strategies such as Facebook, YouTube,
local news channels so that they can provide information to local consumers about the new
business in market and thus it results in enhancing the sales and profitability of firm. Also,
advertisement is considered as major channel through which information could be delivered to
consumers.
4. Porter's generic strategy
In the corporations, companies want to enter in emerging and international market for
increase business level and market share in their respective sector. When it enters in new market

then firm has to face various rivalry business entities which are providing same products and
services to the customers. Further, for make better position and face competition there are
various strategies and tactics used by the firm. In the present case Qbic hotel is going to enter
Romania market by providing new service such as club membership where it has to use
strategies to gain competitive advantage (Cavallo and et.al., 2014). In context to this, Porter's
generic model is the most helpful to compete rivalry firms and attract higher number of
customers. In the Porter's generic model there are mainly three strategies are considered which
are such as cost leadership, differentiation and focus strategy. These all the strategies of Porter's
generic are explained as below:
Cost leadership strategy: One of the most widely used Porter's strategy in order to enter
in new market and gain competitive advantage is the cost leadership where it taking base to the
cost. In this type of strategy the Qbic hotel can enter in new market with the help of cost and
prices of services. When it provides club membership to the customers at the lower cost as
compare to rivalry firms then it able to attract more number of buyers towards it. In every
market, most of the customers tend towards prices of goods and when charges of particular
produce or service are lower, then users will automatically purchase. In this the firm take care
another factors also rather than only cost of products. In order to gain competitive advantage in
with the help of low cost it uses various factors and methods like as economies of scale,
innovative technologies, control over wastage and damage products etc. With help of such
methods Qbic hotel able to provide new service club membership at the lower cost and attract
customers.
Differentiation strategy: Another strategy of Porter's generic to gain competitive
advantage is differentiation which seeks towards unique and very different products as compare
to rivalry firms at Romania. In such type of tactic the Qbic hotel produce very different service
by which customers easily show their interest for consuming it (Hill, Jones and Schilling, 2014).
Every consumer wants new and innovative services which has different features and when the
Qbic hotel offer such services in Romania then customers will enhance. Further, it able to
become different from the competitors and gain competitive advantage in new market. This is
also one of the best strategy and used by various firms to enter new market and achieve goals and
objectives of increase profit and market share.