HOTO7003 Marketing Across Cultures Assignment Sample
Executive Summary
La Grand Parador is a hospitality brand that has been mainly located in London, United Kingdom. The latest technologies equipped within the hotel brand as well as sufficient customer service are known to be one main key characteristics of the hotel. The bedrooms as well as suites within the accommodation brand are leveraged with the latest technology along with simplistic as well as contemporary design. It has also been revealed that the overall workforce within the accommodation brand is very friendly with their consumers and has also gained excellence in providing efficient customer service in an appropriate manner. La Grand Parador has more than 10 branches established within different parts of United Kingdom. However, the hotel brand has been planning to explore its business Ventures within the hospitality sector of Spain. It has been found that Spain has been regarded as a profitable country for the accommodation brand to establish its branches within different parts of Spain and uplift its profitability level up to a certain extent. It has also been found that there are several existing competitors that might hinder the expansion of the business operations of the hotel brand within Spain. However, it has also been experienced that the accommodation brand has implemented several business strategies in order to tackle with the fierce competition among its rivalries within the business market. As a new market entry strategy, La Grand Parador will be implementing new innovative ideas as well as Technologies to provide excellent as well as personalized services to its consumers within affordable prices as compared to the competitors. Due to the cultural differences, the accommodation brand is required to implement certain product as well as communication strategy that is being regarded integral for the company to minimize the possibility of cultural misunderstandings within its business environment.
Introduction
La Grand Parador is an accommodation brand that has been situated in different parts of London, United Kingdom. The main agenda of the accommodation brand is to provide a suitable as well as hygienic place and environment for its accommodators within affordable prices. The accommodation place was established by Sir Peter Holmes in 2004. Currently, it has been stated that there are more than 10 branches of the accommodation brand throughout England. The slogan of the accommodation band is “Live Peacefully”. It has also been experience that the accommodation brand provides very efficient services to the consumers defines the value, teamwork, excellence, simplicity as well as leadership that has been established within the accommodation brand in an appropriate manner. The hotel is also known to be leveraged by state-of-the-art technology that has been developed by Apple. It has also been revealed that the mean that the main rivalries of the accommodation brand are stated to be situated near the accommodation place.
Market Attractiveness
Macro Environmental Analysis
PESTEL analysis
Figure 1: PESTEL analysis of Spain market
(Source: Ünüvar, Mürsel and SEZGİN, 2017)
Political
As indicated by the information gathered by The World Bank, it has been distinguished that the list for political dependability in Spain is at present developing, however it was essentially under 0.00 file during 2006-2011. In this manner, the dangers of destabilization of the public authority are higher than in other Western European nations yet are not however basic as it seemed to be during the earlier years. The brought down paces of government steadiness experienced by Spain during the new year’s, Spain affected inn industry by making the country less appealing to unfamiliar financial backers. Nonetheless, current government solidness is ideal for unfamiliar investors. The rivalry should be guaranteed and constrained by the country’s antitrust power – the Comisión Nacional de la Competencia (CNC). The contest law is implemented by the Competition Service (Servicio de Defensa de la Competencia) and the Competition (Tribunal de Defensa de la Competencia) (Ünüvar, Mürsel and SEZGİN, 2017). The serious guidelines in Spain establish a reasonable climate for the rivals in the lodging business and ought to advance its further turn of events.
Economical
The serious monetary emergency as of late experienced by Spain has drastically impacted the business cycles in the country. The incredible downturn of 2008 has caused a critical reduction in the business exercises. The business cycle box in the mid year of 2013 was trailed by the recuperation time frame proceeding till now. Despite the fact that Spain encounters business cycle box, the business in the nation should observer the fruitful recuperation and extension during the closest 10-20 years (Shahid, 2019). The cash supply in Spain keeps on developing. Cash Supply M1 in Spain is 663777 EUR Million while Money Supply M2 is 1032192 EUR Million. The expanded cash supply influences loan costs of the country. The expansionary financial arrangement in Spain can prompt further reduction in loan fees. The expendable Personal Income in Spain expanded to “215100 EUR Million” this year and Spain Real Household Personal Disposable Income is at a current degree of 98.80. There is a huge distinction in the extra cash of the top and the lower part of the number of inhabitants in Spain. Spain’s brought down extra cash rates are probably going to make the country appealing to unfamiliar financial backers because of the brought down costs required for paying the nearby workers (Fonseca and Bucho, 2018). After an intense diminishing in swelling in 2008-2009, it encountered a time of development hindered by rehashed decline beginning in 2012.Currently, buyer costs list in Spain keeps on falling almost 0.5 percent consistently. The lodging business fundamentally impacts the purchaser value file in Spain, as neighborliness is one of the principle supporters of the more extensive economy. Hence, the improvement of lodging industry ought to be one of the primary needs of the public authority for joblessness in the country.
Social
It has been said that as of July 1014, Spain had an all out populace of almost 48 million. Almost 50% of the populace is matured 25-54 years, and the middle age is 41 years. The metropolitan populace contains almost 77% of all out populace. Roman Catholicism is the overall religion. Besides, the Spanish abundance hole is viewed as one of the greatest in the European area, as it the most inconsistent in Europe (Heinberg, Ozkaya, and Taube, 2017). Top a fifth of the general public is roughly multiple times more extravagant than the lower part of the populace. The inconsistent pay conveyance in Spain influences the inn business, as it ought to spur a high interest for low-paid positions in the accommodation area. Additionally, the balance between fun and serious activities is one of the essential needs of the Spanish populace. Spaniards are less inclined to consider vocation the main thing of their life than the number of inhabitants in Northern European nations. Spanish individuals esteem recreation generally high, which provokes an incredible interest for lodgings among the number of inhabitants in the country. The degree of fulfillment from buying for family and self in Spain is medium and is like other Western European nations (Domingues and Nunes, 2018). The significance of other’s reverence of assets is low while eagerness to attempt new advancements is medium. Most Spaniards will in general give a lot of significant worth to recreation time and consider acquiring time for day to day life as probably the greatest objective. Such circumstance is probably going to advance the popularity for administrations given by friendliness area, including the lodging business.
Technological
The foundations chipping away at improving existing and making new innovations in Spain work together with industry agents and move new advancements to the likely clients. The out of date quality rates in many enterprises in Spain are moderately low. The low degree of oldness in Spain draws in unfamiliar sightseers keen on utilizing administrations dependent on the cutting edge advancements. Despite the fact that, Spain is known for its rich history of developments, both in the bygone eras and during the most recent hundreds of years. Spain possesses the 10th spot in the rankings of world science, yet the spending cuts brought about by Spanish monetary emergency essentially diminished the paces of new logical disclosures. Spanish framework for science and innovation intensely relies upon the public area, which makes it profoundly powerless to any progressions in the financial status of the country. Despite the fact that the public authority will in general go through much cash for research, the Spanish monetary emergency caused the profound spending cuts that fundamentally diminished the paces of new logical disclosures.
Environmental
It has been recognized that the country’s enormous region causes huge varieties in environment and climate across it. The environment is for the most part gentle, which is an extraordinary benefit for the travel industry related enterprises, including inn industry. The seaside areas in the South and Eastern pieces of Spain have the Mediterranean environment, which is profoundly advantageous for the travel industry. These regions are ideal for visiting during the entire year. The gentle environment is probably going to stay one of the essential advantages advancing the advancement of touristic administrations and the lodging business. Spain imparts the Iberian Peninsula to Portugal and is encircled by the Atlantic Ocean and the Mediterranean Sea (Capocchi et al., 2019). Such area provides for the country various stretches of coastline that are alluring locales for sightseers. Spain has the Balearic Islands and the Canary Islands, which are famous touristic objections. Spain is the rockiest country in Europe. The country’s interesting invaluable geological area is perhaps the most persuasive factors decidedly impacting the lodging business.
Legal
In 1963, the primary uncommon Act in Spain precluded hostile to serious practices. The subsequent rivalry Act that presented a cutting edge arrangement of contest law authorization in the country because of Spain’s increase to the European Economic Community in 1989. This demonstration gave SDC and TDC greater assets and more strong devices to complete their obligations. In 2007, the third rivalry Act, which made the Comisión Nacional de la Competencia (CNC) (Talib, Talib and Talib, 2018). The contest laws in Spain are probably going to be ideal for financial backers and decidedly impact the lodging business. However, in 1978, the institution of the Spanish Constitution, which manages the guard of buyers. Royal Decree Number 1801/2003, which characterizes the wellbeing and individual security principles appropriate to any item or administration, was established in 2003. On the other hand, The General Law on the Protection of Consumers and Users was passed in 2007.
The hospitality industry offers types of assistance and items that are qualified to the referenced guidelines and ought to adjust to the acknowledged norms of wellbeing. The public authority has dispatched a bundle of motivators pointed toward advancing position creation and personal business. (Mukhezakule and Tefera, 2019) The base is set by the Government every year, which is as of now almost 650 Euros. All business contracts in Spain are enlisted at the work workplaces however composed agreement of work isn’t required. The work laws in Spain are pointed toward ensuring and being positive for the representatives.
Competitors
The vital aspects that are required to be looked by La Grand Parador is the market segmentation the type of service as well as the location in which the accommodation brand will established its branches accordingly. It has been found that there are several competitors existing within the hospitality sector of Spain that can act as a barrier for the accommodation brand to outgrow its business operations in Spain in an appropriate manner. The Westin Madrid, Hotel Arts as well as mandarin Oriental unknown to be the accommodation brands that can hinder the smooth business operations of La Grand Parador in an effective manner (Vakil Alroaia, Zolfaghari and Sotoudeh, 2020). The location that has been opted by La Grand Parador is The Great Mosque of Cordoba. Henceforth, the local accommodation brands can also affect the overall business happenings of La Grand Parador in a negative manner.
Market Entry Strategy
Figure 2: Marketing Entry Strategy
(Source: Kalotra, 2017)
It has been noticed that when it comes to responding to the threat of corona virus and consumer behavior changes, the single most important marketing message that hotels must convey is that safety and sanitary procedures are in place. After all, in order for visitors to stay with you and enjoy their visit, they must believe that their risk is minimal. The Grand Parador must be visited. On your website’s homepage, on social media, during the booking process, and in your pre-stay correspondence, mention the hygiene and safety precautions you’re taking. Make sure your third-party platform descriptions are up to date, and consider ways to go above and above, such as leveraging contactless check-ins and payments. Moreover, those in the inn business need to battle with the effect COVID has had on business clients (Kalotra, 2017). With more individuals telecommuting, the inescapable crossing bankrupt occasions and limitations on mass social events, business travel has been hit particularly hard. On the off chance that this is a critical concentration for your inn, you may have to move center. Despite the fact that relaxation travel has been affected as well, it has not been hit to a similar level and there are still approaches to speak to recreation voyagers, particularly in the event that you center your lodging promoting procedures around families, couples and gatherings of companions (Wang, Liu and Zhang, 2020). The accommodation brand will likewise have to ensure you use dispersion and correspondence channels that permit you to arrive at these visitors. From this time forward, the convenience brand should feature exercises like visits and visits to nearby milestones, and advance offices that will engage relaxation visitors. La Grand Parador is likewise needed to investigate how rival inns that represent considerable authority in recreation travel are advertising their properties as well.
Key Target Markets
The main agenda of La Grand Parador is to provide efficient customer service consumers and Make every single accommodator satisfied as well as amazed with the experience of staying in the accommodation brand. However, there are certain markets that are relevant for the company to be explored accordingly. In regards to the Geodemographic features of Spain, it has been identified that La Grand Parador are mainly emphasizing on targeting the Tourists visiting the country as an individual or in groups. Moreover, the company also looks after the people who look out for a good leisure (Thwala and Slabbert, 2018). In addition, it has also been contemplated that the accommodation brand mainly focuses on that tourists coming from different parts of the world. Due to the latest technology equipped within the environment of La Grand Parador, it can be proven beneficial for the accommodation to an experience a hike in the staying of the tourists in the hotel that will eventually result in acquiring more profit for the hotel appropriately.
On the other hand, it has also been revealed that La Grand Parador make usage of VALS segmentation structure in order to recognize the main targets in regards to opinions, interests as well as activities. It has been revealed that the main target segmentation types were achievers as well as innovators (Kovalainen, 2020). Achievers are known to be the hardworking and goal oriented individuals that have high income levels, which mean they are not concerned about the prices. Whereas, the innovators are known to be the individuals that tend to try new experiences and also known to be open to new ideas as well as technologies.
Brand Positioning Strategy
It has been realized that the friendliness is about individuals who are served by the business. In the event that their voices aren’t being heard, they will not react well to their visit and pick to go somewhere else later on. To do as such, La Grand Parador is needed to address the issue just as prerequisites of the visitors that in the end results straightforwardly to mark steadfastness, which is a lot harder for free inns to get. At the point when visitors book with a chain brand, they know there’s a standard they can expect during their visit. They face a possible challenge on quality by stretching out to a free inn (Esmaili et al., 2017). It is additionally vital for the convenience brand to satisfy its visitors’ necessities just as fabricate that brand devotion and the inn will get positive audits on the web. That transforms into an expanded number of future visitors, which puts any autonomous inn on target for future achievement.
Figure 3: Brand Positioning Strategy of La Grand Parador
(Source: Du, 2020)
Furthermore, it has been discovered that there ought to never be only one core interest. Moreover, the accommodation brands have numerous individuals who help run it and norms that make the lodging capacity consistently. It is vital for La Grand Parador to survey a couple of key highlights of your inn to reestablish your obligation to them as an inn situating procedure. Moreover, the convenience brand is likewise needed to think about the qualities and guidelines of your lodging. These might be to reliably put visitors’ requirements first, consistently offer natural menu alternatives or band together with a green cleaning administration to limit the carbon impression. La Grand Parador is likewise need to consider your staff, both toward the front and back of the house (Du, 2020). The convenience brand ought to likewise gauge the significance of their partner gatherings, in the event that you have any. It is should have been considered prior to promoting or business strategy changes are made. La Grand Parador should likewise list the lodging’s responsibilities and make them clear to visitors on your site. The objective is to have responsibilities that are unique in relation to the contenders existing on the lookout. Also, the accommodators need to realize that they regard the upsides of the lodging they book with, which is the reason recharging or re-imagining the general responsibilities is a situating technique for the convenience brand. .
Marketing Mix
Standardization vs. Adaptation
It has been regarded that while contemplating the international marketing mix, a significant decision for a particular brand is required to be decided with the use of standardized marketing mix along with the single marketing strategy in order to adapt marketing mix to the specified market location. On the other hand, standardization signifies that the requirements as well as demand for the consumers do not differ with different market segments. The main agenda is that the globe is becoming more and more similar in regards to the consumer requirements as well as factors affecting the environment accordingly (Ebojie, 2020). However, the main ideology of adaptation is to trim down the market in order to adapt to the different international market requirements. Henceforth, different brands must adapt to some of the marketing mix elements in order to comply with the market requirements in an appropriate manner.
Location Strategy
It has been stated that La Grand Parador mainly emphasizes on international tourists that can be counted as the consumers that are coming from abroad who are looking for efficient customer service along with experience while staying in different accommodation brands. Keeping this in mind, La Grand Parador has put keen observation on selecting the most appropriate location for addressing the requirements of the additives in an appropriate manner. For this, the accommodation brand always opted for selecting the most appropriate location within the famous tourist spots in London. In the contacts of Spain, the company has decided to implement the same ideology in order to select the most accurate location (Fayvishenko, 2018). It has been revealed that the best location that can be selected by La Grand Parador to build its branches is near the Great Mosque of Cordoba. Due to the selection of the location, the accommodation can generate more profits due to the accommodation of more number of tourists within the hotel.
Product Strategy
It suggested that the company is required to create its online applications to offer its products to the consumers. With the development of application, the organisation will be able to create customer loyalty in the market. However, the application is required to develop in such a manner that would have the potential of experiences of the consumers hassle-free. The uniqueness offered to the consumers in respect of Hospitality Services is required to be increased by the company (Chen et al., 2017). This can be done by the making the experience of customers memorable as well as fulfilling in respect of on and off property. In this manner, La Grand Parador will be able to differentiate its services from the other hotels of Spain.
Pricing Strategy
It would be recommended type the company is required to adapt premium pricing strategy for offering the Hospitality Services to the consumers. The application of premium pricing strategy will help the company in reflecting its brand portfolio among the consumers (Hu and Trivedi, 2020). It has been identified that the competition in hospitality industry of Spain is increasing on a continuous basis. Therefore, the company is also required to implement competitive pricing strategy within the organisation to offer its services to the consumers. It would be recommended that the company is required to offer several deals and discounts to the customers on regular basis. This will allow the visitors in saving amount on their stay in La Grand Parador. Prices in hotel industry of Spain are affected by several factors that include demand, location, and level of competition. Therefore, it is important for the company to offer attractive discounts as well as deals to the customers (Loo and Leung, 2018). This is required to be done by the company so that it could attract a large number of consumers in the hospitality industry along with the retention of its premium brand image in the market.
Market Communication Strategy
It would be suggested that La Grand Parador is required to use different platforms of social media for market communication in the hospitality industry. It has been identified that Millennials have the tendency of not purchasing old-fashioned travel norms. Millennials prefers to be spontaneous that include last minute bookings. Near about 49% of the Millennials book trips in the last minute. Therefore, it would be added advised to that the company is required to enter into partnership with Snapchat or Instagram influencers. The influencers will showcase luxury hospitality Services that is being offered by La Grand Parador. This will have the potential of influencing the purchasing decision of consumers in favour of the company. The company is required to post on its official social media page on regular basis (Heinberg et al., 2019). This will keep the consumer updated regarding the hospitality Services been offered by the organisation. With the use of social media platform, it would be able to inform the consumers regarding new services and discounts. This will have the potential of attracting a large number of consumer bases for La Grand Parador.
Conclusion and Limitations
It has been concluded that La Grand Parador is a hotel chain with locations in London, United Kingdom. The major goal of the accommodation brand is to create a pleasant and sanitary environment for its guests at a reasonable cost. In Spain, there is a significant disparity between the additional cash of the upper and poor classes. Because of the lower costs necessary for compensating local workers, Spain’s reduced extra cash rates are likely to appeal to new financial supporters. Despite this, Spain is noted for its long history of progress, both in previous centuries and in the last few hundred years. Spain is ranked 10th in the world in terms of science, but the budgetary constraints imposed by the Spanish financial crisis have significantly slowed the rate of new logical disclosures. It has been discovered that there are various competitors in the Spanish hospitality market who can operate as a barrier to the accommodation brand’s ability to appropriately outgrow its business operations in Spain. The key target segmentation categories were achievers and innovators, according to the findings. Achievers are diligent, goal-oriented individuals with high income levels, implying that they are unconcerned with price fluctuations. The essential point is that the world is becoming more and more similar in terms of consumer demands and environmental considerations. It has been discovered that the greatest place for La Grand Parador to establish its branches is near the Cordoba Great Mosque.
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