2. Introduction

The Maple Hotel has experienced growth in an increasing manner to become one of the leading brands among the UK hospitality industry. The Maple Hotel operates in strategic locations that are usually occupied by tourists. However, the hospitality brand attracts a large section of business consumers as well that shows its popularity within the industry. The hospitality brand owns its hotels in places such as London, Kendal, Salisbury, Manchester and Liverpool. The Maple hotel owns a loyal consumer and it is considered to be among the top brands within the UK hospitality sector. The Maple Hotel currently operates in 12 countries all over the world and has 78 hotels in different locations. [Refer to Appendix 1]

2.1 vision, Mission, and Values

The mission of the Maple Hotel to provide accommodation services to new regions spreading throughout the world. The vision of the hospitality brand is to provide food, beverage and accommodation to the consumers at a much affordable rate. The Maple Hotel always intended to provide adequate services to its customers for their satisfaction according to British values.

2.2 Target Markets

Targeted markets within the UK can be segmented into two parts, which are tourist travellers and business travellers. Tourists are the section of people who travel for holiday or vacation purposes. On the contrary, business travellers are the people travelling for business and work. The Maple Hotel focuses on each section according to its strategic location of individual hotels.

2.3 The Competitive Market

The UK hospitality industry is congested with multiple players in the market although the Maple Hotel focuses on capturing most of the business segment within the market. Alpine Hotel, Marask Hotel, Sevoke Inn are the direct competitors of Maple Hotel in the UK market.

3. Market Attractiveness

3.1 Country risk and attractiveness

Political risk and attractiveness

Recently the political stability of Spain is developing at a slow rate according to the view of the World Bank. As mentioned by Al-Nassar (2021), at present it has a minor tendency of getting decentralized in comparison to the last year and it will be in better condition for the hospitality industry. Due to the instability in the last few years, the respective industry was not able to show its appropriate growth; as a result, less number of foreigners visited Spain. The taxation system in Spain is high which will make it difficult for Maple hotel to run their business. Regional tourism authority provides licenses to the Maple hotels to run their business. The hotel authority will be bound to take permission from the Ministry of Industry regarding different factors such as safety, health, hygiene as well as emergency plans.

Environmental risk and attractiveness

The geographical location of Spain provides an extra flavor to the hotel industries which attracts foreign visitors to visit Spain and increase the profit of the Maple industry. As stated by Chernysh et al. (2018), the climatic condition of the country remains fabulous throughout the year and increases the attractiveness.

Socio-cultural risk and attractiveness

The country is found to be more dedicated towards individualism as the individuals prefer not to work collectively. It is counted as a risk in maintaining teamwork in the organizations and will be creating issues for the Maple hotel. The dominant power of Spain is high which will provide proof of risk in case of cultural differentiation for the Maple hotel. The people of the country are considered to be hard working which will provide an advantage to establish the hospitality industry in Spain (Cuong and Hung, 2020). The employment rate is low in Spain which will help attract individuals to jobs.

Technological risk and attractiveness

The research regarding the implementation of smart technologies in the hospitality department of the country was lessened due to the presence of recession. Smart technologies are used but not updated versions which sound to be a technological risk (Serfointein and Govender, 2020). The present scenario about technological improvement is working on renewable energy which is an innovation. The latest technologies that Maple hotel can use in Spain are robotics, AI and other advanced types of machinery. The transportation systems of Spain are much developed which will apply opportunities for developing such industries.

Legal risk and attractiveness

The implementation of the Competition Act of 2002 of Spain for hospitality sectors had provided opportunities for the businessman to invest in such sections. The Employment law is used by the following industries where the contracts have been signed by employees and there is a depiction of the rules, regulations and behavior of the hotels towards them (Pathumporn et al. 2020). The National Institute of Safety and Hygiene looks into hygienic maintenance whereas Royal Decree Number 1801/2003 aims at the quality of health and safety of the staff and will assist Maple in maintaining hygiene thoroughly.

Economic risk and attractiveness

The country is found to be economically stable as it has shown a growth of more than 2% on yearly basis in GDP. At present, the GDP of Spain is more than 1.389 lakh core which is seen to be much better after the crisis period that occurred in 2008. The parameter of inflammation is well managed according to a recent survey along with the improvement in the rate of unemployment. One of the risks that have been noticed is the degradation in GDP, which is estimated to be getting lower in future (Cuong and Hung, 2020). The attractive part of the industry is that it can attract not only domestic visitors but more foreigners. [Refer to Appendix 2]

3.2 Key Demand Drivers

Spain has always been a top tourist destination among the travellers as people all over the world come to visit this country. However, economic stability in the country has provided a positive business environment that helps the business to grow in the market (KHAN et al. 2018). Increased business activities within the Spanish economy are resulting in higher business trips by multinational corporations. Furthermore, people from the Euro zone are more interested in travelling to Spain as those countries are more integrated with the country.

3.3 The competitive market in Spain

The competitive market in Spain in the hospitality industry is high as it provides a chance for newcomers. As mentioned by Alrawadieh et al. (2019), there is the availability of a huge number of stakeholders such as suppliers which increases the profitability rate of the business. The quality of the hotels in Spain is not according to the customers’ demand which provides a good competitive advantage for the Maple hotel to establish itself with luxurious facilities. The main competitor of the Maple hotel is Park Hyatt Mallorca, the Savoy hotel and Mandarin oriental Barcelona. The customers for the business in Spain are more focused on the cost rather than the facilities which have huge competition in the market. [Refer to Appendix 3]

3.4. Market Entry Strategy

The Maple Hotel is advised to initiate a joint venture for operating in Spain. Ability to own the company as well full control over the operation will be beneficial for the hospitality brand. Market entry strategy will consider the geographical and demographic aspects of the Spanish market in order to enter the market (Hussain et al. 2020). However, considering the business tourist factors the hospitality brand directly entered the market as a new firm to provide services.

3.4.1 Joint Venture

The Maple Hotel can go into direct partnership with local hospitality brand Alcruz Inn to enter the market of Spain. Existing hotels of partnered brands in multiple locations of Spain will enable it to provide services in an immediate measure. The tourists will receive integration of British and Spanish culture through the services. Combined value of two institutions from different values impacts customer experience (Sota et al. 2020).

3.4.2 Direct Investment

Through direct investment The Maple Hotel can directly enter in the Spanish hospitality industry although market entry will require time setting up business resources in Spain. The UK hospitality brand can explore strategic locations such as Madrid, Barcelona, Granada, Valencia and Seville. The hospitality brand will start operating through these strategic locations aligning its business strategy to explore the Spanish market.

4. Key Target markets

Geo-demographic characteristics

The segmentation that is done for the Maple hotel in the following business is based on the customer’s profiles. It provides an advantage for the business to guide the customers according to their matter of interest. According to  Shabani et al. (2018), the segmentation for the target customers is to be done based on age, gender, income, location and education. The information regarding the customers of Maple hotel provides help for the hotel management to make nether campaigns to attract more customers.

The customers who are aged from 1-50 are considered as the target customers. As stated by Dušek et al. (2019), there are certain criteria regarding the ages such as the customers who are from 1-17 are to be provided to be allowed to have access to the service along with their parents. On other hand, the individuals of the age group from 18-45 are provided with all the facilities such as sports and clubbing. All the high-class facilities are open for both the male and female as they can equally participate in all activities without any difficulties.

The income of the individuals needs to be high as it provides luxurious facilities that are costly for medium and low-income people.  There are few facilities for low-income individuals as for being a member of the various activities there is a need for membership which is not cost-effective (Chen, 2017). The geographical location of Spain is better in comparison to the other countries and is preferable for Maple hotels.

Psychographic characteristics

The psychological segmentation among the customers is done based on the traits that are psychological such as their preference and their habitats. As urged by Ho et al. (2021), the organizations that can understand the needs of their customers are seen to be having to gain more profit in their business. The factors upon which the segmentation is done are values, interest, lifestyle, priorities and motivation of the clients. The psychological segment is different as compared with the demographic segmentation as it deals with the emotions of the people.

The high-end services are provided to the customers based on their value which depicts whether the facilities suit them according to their personalities. As per the view of Shahi and Goswami  (2018), the customers who are more dedicated to sports are offered to join sports clubs.  According to the interest of the customers, different facilities are implemented such as parks, banquets and different cultural events. Based on the lifestyle of the customers there are four sections namely luxury, Dulux, mid and economy. The priorities of the customers vary according to their personalities such as some are found to be more dedicated towards hygienic than first-class qualities. Different events are organized which provides motivation for the customers to visit the Maple hotel and allows them to recommend it to their near ones.

5. Brand and Positioning Strategy

The brand and the positioning strategy play an important role to boost the value of the Maple Hotel in the international market. As mentioned by Han et al. (2020), the positioning needs to be done based on the perception of the customer. The position of Maple hotel is done in such a way that they can focus on all the facilities they could have provided to their target customers. The top 3 competitors of the Maple hotel are Park Hyatt Mallorca, the Savoy hotel and Mandarin oriental Barcelona as they are seen to be offering the same facilities as the Maple hotel. The three main aims of the Maple hotel are to look after the health, hygiene and culture of the customers. The hotel has focused on the improvement of the quality of food to keep them fit. [Refer to Appendix 3]

The positioning map has been depicted in the following study which proposes the position of all the 3 competitors of the Maple hotel including its position. In the positioning map, there is a clear view of the position of perk Hyatt Mallorca which provides high-quality services along with high prices. It would provide an opportunity for the Maple hotel if they would be able to provide high service quality along with low prices. In the case of the Savoy hotel, it has the same criteria to provide high-quality services at high prices. The scenario is different for Mandarin oriental Barcelona as it provides low standard services with high pricing which is seen to be beyond the expectation of the customers. It provides an opportunity for the Maple hotel to have customers easily. Hotel Alpine has been identified within the range of high quality lower price in the position map, whereas hotel Marsk has been found in the quadrant of low price and poor quality. On the other hand, the hotel Sevoke Inn has been placed under the category of high price and lower quality. The present position of Maple hotel is it provides high quality with low services which is the best strategy for the hospitality market.

6. Marketing Mix

The Maple Hotel in order to promote its products and services in the new market is required to identify proper strategies. Identifying the strategies will enable the hospitality brand to implement adequate necessary steps to enter the market and for promotion of its products. According to the study of Adeola et al. (2018), considering market expansion in another nation a standardized marketing mix promotes the fundamental strategy of international marketing mix. Main aspects of consumer demand and requirements remain the same over different markets. On the other hand, adaptation of customers’ requirements considers changes in the demand in different markets. Customisation of service and products provides a higher opportunity to the organisations in penetrating the market. Implementation of differentiation strategy in the market through unique selling points, iconic architecture along with strategic locations can provide significant advantages to the hospitality brand.

6.1 Location Strategy

Luxury hotel tracking and demand statistics for developed areas can provide suggestions for strategic locations in Spain. Development of new hotels in the same locations with an existing hotel can significantly reduce the opportunity of operations in the market. On the other hand, this will reduce the competition for the UK hospitality brand. The Maple Hotel targeting the business tourists are required to spread its business in the major cities rather than in the outskirts. As per the view of Ekawati and Yasa (2018), the location strategy of marketing mix depends on the place of business; it covers one of the most crucial aspects of market operation. The company must approach the property developers to lease out the strategic locations to obtain a strategic advantage in the market. Airport adjacent places are more are in Madrid, Barcelona and Granada is more attractive for business activities as it will attract the consumers travelling for business purposes.

Spain hosts a huge number of tourists every year and produces an astonishing amount of output through the tourism industry. Locations with scenic beauty, places having wonderful beaches, as well historical places will be the most preferred locations for the UK hospitality brand. As argued by Gunawan and Wahyuni (2018), places with high economic activities and tourist spots attract higher footfall as compared to other cities. The Maple hotel is required to lay foundations of its hotels in beach adjacent areas, and popular tourist targeting zones for better footfall in its hotels. Abundance of historical monuments in those places along with rising business activities makes these areas suitable for operation.

6.2 Product Strategy

The product strategy of the Maple Hotel will be distinct as compared to that of the UK. Consumer base of those subsidiaries will be completely different, influencing the hospitality brand to consider new strategies. According to the study of Sudari et al. (2019), differences in the products provide a significant edge over the rivals in the market as those results in higher profitability. Each hotel of the Maple Hotel will consist of 60 to 100 rooms along with world class facilities. Different types of room will be provided by the hotel management to cover the requirements of individual consumers. For instance, the Maple Hotel, Madrid will hold 90 rooms including suites and deluxe rooms, conference hall, event space, swimming and gym facilities.

Apart from accommodation, food and beverage through availability of dining facilities will provide key selling points to the Maple Hotel. Additionally, wine tasting events in the grapevines of the nearby areas will provide a significant advantage to the hotel brand. Inclusion of the cultural heritage of the host country within the product design of the hospitality brand will promote the hotel into a strong position in the market. According to the study of Pham et al. (2019), food and beverages combined accommodation facilities hold the key areas in product designing within the hospitality sector. Furthermore, the structure of the building will be influenced by Spanish heritage and architecture with the facilities of fireplaces that will provide a combination of vintage and modern outlook.

6.3 Pricing Strategy

The Maple Hotel will incorporate a competitor based pricing strategy which will be different from the strategy implemented in the UK market. Inclusion of market power due to leading position in the market will be ineffective in the initial phases of market entry. According to the study of Michopoulou and Moisa (2019), the hospitality industry being a competitive market, a high price of the products and services will lead to lower the revenue of the organisations. Furthermore, the online based hotel accommodation services also increased the competition in the hospitality sector. Applying competition based strategies in the market the hotel will look into the prices of other hotels in the market to fix its prices. Being a new entrant in the market the Maple Hotel would deliver quality products at a comparatively lower rate to the customer.

Pricing strategy of the Maple Hotel will be product oriented as different products will follow different prices. However, pricing of the products will be distinct in order to match local competitiveness in the market. Pricing strategy of market leader in the tourism segment can provide significant advantage in the market through attracting more customers. As per the view of Sadq et al. (2019), market leader pricing strategy will impact low prices in vacation tourism making an insignificant profit from those areas. On the other hand, high pricing in business tourism will influence high revenue as those segments of the industry remain unexplored.

6.4 Promotion Strategy

Promotional strategy of the Maple Hotel will mostly follow direct marketing along with online advertising. Direct marketing can be referred to as marketing through database marketing, magazine advertising, website marketing such that it influences the consumers directly. For instance, advertising through travel magazines such as Travellers, World Travel Magazines will attract the viewers. According to the study of Nayyar et al. (2018), direct marketing is considered among the major effective procedures of marketing that influence the customer’s decision. Domestic travel within Spain will be marketed through this approach of marketing. On the other hand, branding promotion of the company will be executed from the UK to ensure the hospitality brand maintains a proper branding position. The branding promotion of the Maple Hotel will target the targeted market segment increasing the interaction of the brand with its potential customers (Khare and Bhagwat, 2019).

Online based advertisement through social media is a major tool in the era of digitalization. The Maple Hotel through its social media accounts will continue customer interaction as well the promotional activities. Online advertisement will be based in-real data that will be more effective in flourishing the business (Salman et al. 2017). For instance, people from Italy constitute the majority of tourists visiting Spain hence; active online promotion in Italy will increase its sales and revenue.

6.5 Outline of Communications strategy 

The Maple Hotel will keep interacting with the customers through establishing a customer service section. Promotional activities of green hospitality influence the customer behaviour in a positive manner enhancing the sustainability of the business (Ho et al. 2021). Furthermore, promotional activities will improve the brand positioning through constant communication with targeted segments.

7. Recommendation and Conclusion

The above study shows the notion of marketing in Spain along with its risks aligned within boundaries of polity, environment, legalities, technology and socio-cultural activities. It may be depicted that the competitiveness in the market of Spain is high following Hotel Maple in the hospitality industry. The segmentation of the business based on customer profile is depicted on the geodemographics of the area using joint ventures as the market penetration strategy. It has been found that the brand and positioning strategy has boosted the value of the hotel Maple in the international market. Focusing on the facilities provided to the customers in comparison to Maple’s 3 top competitors, are equal in this aspect. It may be analyzed that the position of hotel Maple can be made better by providing high quality with low prices. The study has found that the priorities of the customers depend on their lifestyle with the addition of luxury likewise.

The recommendation for the Maple hotel are as follows:

The hotel business is pivotally dependent on the location of the hotel. Choosing a location is thus necessary for the business to grow its customer base. It is advisable to select a location in the suburban areas of Spain to attract customers with scenic beauty and also allow them the provision to access the necessary amenities. As per the view of Al-Ansi et al. (2019), the suburban areas will be perfect for the brand as they can offer customers the pleasantries of nature along with access to certain luxuries. The rural setting may have more greenery and freshness but commuting is a challenge. The access to transport is limited and thus selecting an area in the rural side of Spain can cause loss of customers.

The suburban setting will not only allow lesser pollution and a laid back vacation but also provide customers with a mixture of the urban and rural culture. According to the view of Breda et al. (2019), the taste of both cultures will ensure a higher experience among customers and help in growing the customer base of the organization. Technological adoption is rather slow in the nation however the basics are available to almost all parts of the nation. The adoption of technology will also be less complicated in a suburban area and allow the brand to offer Wi-Fi and television services to the customers. As stated by Zsarnoczky (2018), the use of this location will also help the organization to use renewable energy sources better and also help the community to grow. Hence it is recommended to select a location that has the essence of both rural and urban areas.

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