EG704 International Hospitality Management Sample

Introduction

International marketing is considered as the marketing of the goods and services outside the domestic audience of the firm. On the other hand, customer experience is considered as the strategic shift in driving proper usage as well as adoption of the goods and services in fulfilling the needs of the customers. Mitchells & Butlers plc is considered as one of the prominent organisations in the hospitality sector which aids in managing pubs and pub restaurants in the United Kingdom as well as Germany. The purpose of this study is to evaluate the core target market segment, expectations along with characteristics of the firm. It would further delve into assessing the external and internal trends influencing consumer demand and identification of influential factors. The report would further investigate collaborative strategies and innovative technologies in enhancing customer experience.

LO1: Evaluation of core target market segment, characteristics and expectations

Figure 1: Market Segmentation of Mitchells and Butlers

(Source: MBPLC, 2022)

The core purpose of the customer value driven marketing strategy is to ensure development of proper engagement in terms of the right relationship with the right customer (ANNUAL REPORTS, 2021). The strategic choice of the target customers turns out to be critical as Mitchells & Butlers serves all the customers. In the hospitality sector, segmentation is accounted as the first step which aids to create an efficient strategy of effective price discrimination. In the year 2019, around £14m is accounted as the adjusted operating profit growth. In the FY 2019,  more than “43,000* people in pubs, bars and restaurants that are located across the length and breadth of the UK and in Germany, with over 82% of the UK population within five miles of one of the sites (ANNUAL REPORTS, 2019).” In the FY 2021, the business has observed “guest review scores strengthen, from an average 4.0 out of 5.0 pre-Covid, to 4.3 post-Covid.” The company is further identified to own “All Bar One chain” and has reported an increase in revenue to around 1.1% to £1.98bn (ANNUAL REPORTS, 2021). This aids in assisting push pre-tax profit up for around 26.1% to £169m. The business aids in claiming the decision in terms of switching to a certain food led brand that commits upon expansion of the restaurants chain thereby driving the performance (Ali et al. 2021).

Figure 2: Organisational Structure for governance

(Source: MBPLC, 2022)

In terms of market segmentation, the business has ensured development of a nutritional roadmap which aids to focus upon the increased information and several balanced choices (Rather et al. 2021). As per the reports of the business, the operating segments  of the business are conducted by the Chief Operating Decision Maker where around 4.0% “like for like” growth across the sector in terms of restaurants and pubs have been determined. However, “UK Consumer Confidence” was found to tumble in the month of September, 2020 (ANNUAL REPORTS, 2020). Apart from this, the pressures on the UK consumers are found to consistently build in the short to medium term.

LO2: Evaluation of external and internal trends influencing consumer demand and identification of influential factors

Table 1: PESTLE Analysis

(Source: Illustrated by Author)

Swot Analysis of Mitchell & Butler

Table 2: SWOT analysis

(Source: MBPLC, 2020)

Influencing factors

Mitchells & Butlers Plc aids in determining numerous strengths for the purpose of enabling the same in thriving within the marketplace. However, pressure due to intense competition due to JD Wetherspoon Plc, Greene King Limited Headquarters certainly causes challenges for the business firms (Ali et al. 2021). The business states that the taste of guests is found to evolve consistently and determines ability in addressing the changing preference at scale which sets them apart from the competitors. Target audience acts as a key factor which influences the operations of Mitchell & Butler (Bi et al. 2020). The customers are found to remain loyal to the brands and businesses despite the periods of closure, changing in the templates of operating and reducing the menu. Structural aspects are found to be hedged against the changes determined through the consumer taste and also diversified portfolio of the leading brand (Priyo et al. 2019). This factor has helped the business to acquire proper understanding of the guests and have the systems in place for receiving and relating to the changing needs.

LO3: Investigation of collaborative strategies and innovative technologies in enhancing customer experience

Figure 3: Collaborative Strategies and Innovative technologies

(Source: As Inspired by Sanchez-Casado et al. 2019)

The strategic approach of Mitchell & Butler is to ensure development of a balanced business and at the same time instil a commercial culture. The business here aids in driving an innovative agenda which in turn helps in the maintenance of proper consistency. This emerges as a key to retain stability and growth in the business during the period of external uncertainties (Alnawas and Hemsley-Brown, 2019). The business is found to instil a commercial culture for the purpose of empowering teams across the business firm thereby making changes to facilitate the sustainable growth and development. Here, in  terms of proper innovation, the business proposes to act in a quick and decisive manner for the purpose of remaining competitive within the fast changing marketplace. Driving an innovation agenda in terms of optimised table bookings emerges as a key aspect where the firm proposes to leverage upon increasing the role of technology which in turn improves efficiency of the guest experience (Latif et al. 2020). Proposition of the digital agenda helps to ensure facilitation of new products and development of proper concepts. Application of Artificial intelligence can help the business to make well informed decisions. These aids in streamlining the proper flow of business and optimising the performance accordingly. It can also help the business in proper understanding of the customer needs and help the hoteliers so as to deliver the quality guest experience. Hospitality sector turns out to be increasingly incorporating AI for the purpose of carrying out the customer service tasks which turns out to be significant within the hotels and resorts. The aspect of artificial intelligence in this respect has certainly helped in the improvement of personalisation tasks and deployment enough for the significant business tasks (Li et al. 2020). Other than this, artificial intelligence is identified to help the hotel owners in saving significant money and seek delivery of superior services. AI chatbots have been utilised and incorporated on the social media platform that allows the customers to ask certain questions and get an almost instant response. This turns out in offering the prominent response time which helps in maintaining proper human to human interaction.

Conclusion

International marketing and customer experience is accounted as a prominent aspect in ensuring adoption of the products and services. By thorough evaluation of the above study, the core purpose of the customer value is to determine development of the proper engagement with respect to a high relationship with the right customers. Other than this, the business has further claimed in terms of switching certain food led brands that commits upon the expansion of the chain of restaurants thereby driving the performance in a positive manner.  Mitchells & Butlers PLC also aids to determine numerous strengths for enabling the same in thriving within the marketplace. Proposition of the digital agenda helps in determining facilitation of new products and development of concepts. From the aforementioned analysis, artificial intelligence in this respect has helped in the improvement of tasks personalisation and deployment so as to seek delivery of superior services. It also offers prominent response time which helps in the maintenance of the proper interaction. Hospitality sector increasing incorporates AI in order to carry out the customer service tasks which is significant within the hotels along with the resorts.

Reference

Ali, B.J., Gardi, B., Jabbar Othman, B., Ali Ahmed, S., Burhan Ismael, N., Abdalla Hamza, P., Mahmood Aziz, H., Sabir, B.Y., Sorguli, S. and Anwar, G., (2021). Hotel service quality: The impact of service quality on customer satisfaction in hospitality. Ali, BJ, Gardi, B., Othman, BJ, Ahmed, SA, Ismael, NB, Hamza, PA, Aziz, HM, Sabir, BY, Anwar, G.((2021)). Hotel Service Quality: The Impact of Service Quality on Customer Satisfaction in Hospitality. International Journal of Engineering, Business and Management, 5(3), pp.14-28.

Alnawas, I. and Hemsley-Brown, J., (2019). Examining the key dimensions of customer experience quality in the hotel industry. Journal of Hospitality Marketing & Management, 28(7), pp.833-861.

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Bi, J.W., Liu, Y., Fan, Z.P. and Zhang, J., (2020). Exploring asymmetric effects of attribute performance on customer satisfaction in the hotel industry. Tourism Management, 77, p.104006.

Latif, K.F., Pérez, A. and Sahibzada, U.F., (2020). Corporate social responsibility (CSR) and customer loyalty in the hotel industry: A cross-country study. International Journal of Hospitality Management, 89, p.102565.

Li, H., Liu, Y., Tan, C.W. and Hu, F., (2020). Comprehending customer satisfaction with hotels: Data analysis of consumer-generated reviews. International Journal of Contemporary Hospitality Management, 32(5), pp.1713-1735.

Manthiou, A., (2020). Applying the EEE customer mindset in luxury: reevaluating customer experience research and practice during and after corona. Journal of Service Management, 31(6), pp.1175-1183.

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Mbplc.com (2022). Annual Reports. Available at: https://www.mbplc.com/static/4f270695893ebdb94fb627c6457ab222/MAB_Annual_Report_2022.pdf [Accesed on: 29.01.2023]

Padma, P. and Ahn, J., (2020). Guest satisfaction & dissatisfaction in luxury hotels: An application of big data. International Journal of Hospitality Management, 84, p.102318.

Priyo, J.S., Mohamad, B. and Adetunji, R.R., (2019). An examination of the effects of service quality and customer satisfaction on customer loyalty in the hotel industry. International Journal of Supply Chain Management, 8(1), pp.653-663.

Rather, R.A., Tehseen, S., Itoo, M.H. and Parrey, S.H., (2021). Customer brand identification, affective commitment, customer satisfaction, and brand trust as antecedents of customer behavioral intention of loyalty: An empirical study in the hospitality sector. In Consumer Behaviour in Hospitality and Tourism (pp. 44-65). Routledge.

Ruel, H. and Njoku, E., (2021). AI redefining the hospitality industry. Journal of Tourism Futures, 7(1), pp.53-66.

Sánchez-Casado, N., Artal-Tur, A. and Tomaseti-Solano, E., (2019). Social Media, Customers’ Experience, and Hotel Loyalty Programs. Tourism Analysis, 24(1), pp.27-41.

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Statista.com (2022), United Kingdom: Real gross domestic product (GDP) growth rate from 2017 to 2027. Available at: https://www.statista.com/statistics/263613/gross-domestic-product-gdp-growth-rate-in-the-united-kingdom  [Accessed on  26th January 2023].

Statista.com (2022). Digital population in the United Kingdom (UK) as of January 2022 (in millions). Available at: https://www.statista.com/statistics/507392/uk-number-and-penetration-rate-of-internet-and-mobile-internet-users/  [Accessed on  24th January 2023].

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Appendices

Appendix 1: Statement of the Company FY 2021

(Source: MBPLC, 2021)

Appendix 2: Statement of the Company FY 2022

(Source: MABPLC, 2022)

Appendix 3: Organisational Structure for governance

(Source: MBPLC, 2022)

Appendix 4: Market Segmentation of Mitchells and Butlers

(Source: MBPLC, 2022)

Appendix 5: Financial Statements

(Source: MABPLC, 2022)

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