2. Introduction
2.1 Vision, mission and values
The vision of the Interatlantic continental is to create memorable experiences for its guest and recognising, caring and respecting people while availing the hotel services. The vision of the Interatlantic continental is not limited to the guest only, but it also extends to caring for the people around the world (Andreu et al. 2020). Interatlantic continental believes in the values, which creates a strong and long-lasting engagement with its guest around the world. Working together as a single team globally promotes the shared purpose and guide them in driving their vision and mission. These values help the hotel to constantly analyse and grow its business. Interatlantic continental hotel group constantly make effort to cater the needs of the people while availing its services. It creates a long-term memory and great association with the people of Spain as well as across the globe.
2.2 Target markets
The target market for the Interatlantic continent has a high-end customer. The Interatlantic continental brands are very luxurious and create a great experience for their customers and guests. The hotel generally targets people with upscale class in a financial context. The company has other products as well for the midscale people such as holiday inn, holiday inn select and holiday inn a spree to cater the mid-scale guest needs (Andreu et al. 2020). The Interatlantic hotel brand always strives to maintain its service quality for the unique experience of its guests. They put their sincere effort into creating a memorable stay with the hotel.
2.3 The competitive market
The competition in the hotel industry is very intense and rises every year due to the blooming of new hotels around the globe. The big competitor of the Interatlantic hotel globally is Marriot Wyndham, Hilton and Belmond Ltd. Interatlantic hotel is considered as one of the top-level hotel group amongst all these. Location plays one of the important factors in understanding and deciding the competitive market. Interatlantic hotel is located around the tourist attraction point in the UK (Romero et al. 2019). The hotels function in monopolistic competition. In this competition, the entry barrier is considerably low, and the suppliers of the hotel are very high (Rienda et al. 2020). The Interatlantic provides huge offers and discount on its breakfast menu and on the various bed categories (Andreu et al. 2020). This provides an edge to the Interatlantic hotel in the market. As per the study on the hotel and resort across the globe, it has been estimated that the room capacity of the resorts and hotel globally is around 18 million rooms. This grows at the rate of 2% every year in order to meet the enormous demand. Nevertheless, people always look for a hotel with quality services and value for money.
3. Market Attractiveness
3.1 Environmental scanning
Figure 1: PESTLE factors
(Source: Created by author)
Political
Political factors are one of the important aspects that could affect Interatlantic continental hotel group business profitability in Spain. Interatlantic continental operates in various other countries. Therefore, the political factors of various countries pose a great barrier to their business development (Andreu et al. 2020). The political setup of the countries across the world is very diverse. Therefore, it is required for the Interatlantic continental to carry out in-depth analysis on the following factors to gain a better insight into the political situation and possible impact on the hotel business.
The Level of political stability and adaptability of the hotel sector in the economy of a particular country.
- The Corruption level and the consumer protection and regulation by the authority of the country concern. The corruption in the Spain is considerably high. This affects the company in its business operation activities in the Spain. Hotel industries face many problem due to the bribery involved in issuing the clearance and no objection certificate for various hotel initiatives.
- Intellectual property-related rights and acts The stringent policy in terms of intellectual property rights help the company to protect its unique concept to make the business profitable
- Product labeling and tax rates
- Industry safety norms in the service sector
Economic
The economic policy of the country decides the business performance of the company to a great extend. The foreign exchange rate, savings rate, disposable income, government investment in the economy determines the demand in the Spain hotel sector. The impact of covid-19 on the hotel industries of Spain has huge repercussions. Recently Spain has battled with downturns in the economy (Andreu et al. 2020). However, the effort was taken by the Spain government is helping the business of the Interatlantic continental hotel of Spain. The hotel market of Spain is anticipated to attain USD 24 Billion by the year 2025.
Social
The impact of society, values and the culture of a country determine the business operation of the organisation. The population of Spain plays a crucial role in the Interatlantic continental business development. The skill and demography of the population of Spain have a positive impact on the hotel industry of Spain (Marco et al. 2017). However, the people of Spain, due to Covid-19, have under compulsion to increase their savings. As a result, their attitude towards the hotel services has greatly reduced for a short period.
Technological
Technological up-gradation and its effective integration in the business boost the efficiency of the company in carrying out a profitable business. Businesses in recent time are greatly transforming due to technological advancement. Spain is a developed country with great technological advancement. The Interatlantic continental hotel group uses the technology in analysing the customer needs and creating the most suitable product for their needs. Technology helps the company in creating an efficient supply chain in the Spain hotel industries sector.
Environmental factor
Spain has very stringent environmental laws for the companies to carry out their business. This is the age of stop-and-go-determinism that is nature retaliates due to the overexploitation of the natural resources in the form of climate change, irregular weather phenomenon and global warming. Therefore the government of Spain is more concerned with protecting nature by reducing the carbon footprint. Due to stringent policy and regulation by the Spain government, Interatlantic continental hotel facing several issues (Camison et al. 2020). The policy has forced the company in adopting recycling and sustainable practice in the waste management system. Given the time constrain, the Interatlantic continental hotel group is facing business development issue in the Spain market.
Legal factors
The Spain factors pertaining to the laws and regulation have a huge impact on the business of the company. Interatlantic continental hotel group faces issues due to stringent employment laws, Health and safety laws etc. However, some laws are favorable for the hotel company, such as intellectual property rights regulation and data protection. However, there are several other laws that force the Interatlantic continental hotel group under compulsion to change its business policy to comply with the Spanish government laws. For instance, the Employment laws force the company to recruit people locally. As a result, the scope for recruitment of the skilled workforce gets limited. Therefore, this has a direct impact on the Interatlantic continental business in Spain.
3.2 Key demand drivers
After the banking industries and manufacturing, the tourism sector is the third major economic contributor in Spain. The Hotel sector and related tourism sector contributes approximately around 11% of the GDP of Spain. Given the fact that Spain is the most popular and suitable destination for tourist in the summer season (García et al. 2020). The major key factors helping the hotel industry of Spain in its business growth is the number of increasing tourist across the world. Spain has emerged as a strong tourist attraction for Spain every year. The location of the Interatlantic continental is in close proximity to the popular parks and beaches. Therefore the consistency of demand of the Interatlantic continental remains considerably high in Spain.
The other factors, such as the disposable income of the people of Spain, are increasing. Therefore, the demand for hotel services is constantly increasing in the Spain hotel industries. Interatlantic continental hotel grabbing this opportunity with various policy and strategy implementation. Post covid-19 government has increased its spending in the market of Spain. Therefore it is creating a strong force for the demand drivers for the hotel services across the country. Interatlantic continental hotel group comes under the category of five stars. Therefore, its ultra-luxury facilities in the hotel services are the attracting force in the market of Spain.
3.3 The competitive market in Spain
Barcelona of Spain reported one of the largest overnight hotels stays within Spain. Madrid is projected to become the top place for luxury hotel service destination within Spain. Spain is considered the hub of five-star hotels and a related project in the entire European continent. Over the last couple of years, it has been noticed that Valencia and Bilbao have luxurious hotel services and has enhanced the hotel efficiency of Spain.
3.4 Market entry strategy
Competition in the market of Spain is very intense in the hotel service sector. Interatlantic continental hotel group continuously engage its guest by bringing attractive offers and discount. The company constantly makes an effort in developing the brand value for better market reach. Interatlantic continental hotel group has a huge chain of hotels in Spain as well as globally. Collaboration with various other hotels helps the Interatlantic facilitating smooth entry into the market (Romero and Tejada, 2020). The inter Atlantic has also involved various stakeholders such as travel agency, local guide etc. As a result, Interatlantic hotel has a competitive edge in the hotel industries of Spain. Collaboration with the local guide helps the Interatlantic hotel group in providing their guest with the best hotel stay experience along with the tourist spots visit (Berbel et al. 2017). Companies associated with the outdoor activities organization helps the in attracting maximum tourist to the hotel stays with Interatlantic hotel.
4. Key Target Markets for Your Company
4.1 Geo-demographics
Interatlantic continental hotel group targets high-end customer for its business. In Spain, it targets mostly couples looking for quality time for mental peace. The couple’s age in Spain is between 25-70 and accounts for 25% of the Spanish population. The couple also has very high disposable income, which creates demand in the hotel industries. Intercontinental hotel also focuses on the people with the corporate holiday. The corporate sector gives opportunity to their employee to spend quality time with their family. Interatlantic continental, therefore, has collaborated with various organizations, provide discounts, and offer to such organization for availing hotel services.
Figure 2: Average annual net income
(Source: Statista, 2021)
4.2 Psychographic
The key target markets would be the luxury bedrooms of the Interatlantic continental hotel. The quality and luxury accommodation of the hotel drives the people to avail themselves of the hotel services in Spain. People of Spain and international tourist people always look for comfort and convenience in their stay at the hotel. The affordable cost of stay with the hotel attracts more people to the Interatlantic hotel. They also offer bridge suites stay, which provides an opportunity to the guest to extend their stay. Holiday inn brand focuses more on leisure and commercial travelers. Therefore, it target such people visiting the tourist attraction spot in the Spain.
5. Brand Positioning Strategy
The Interatlantic continental brand concept provides strategy in combination of experiential and functional underpinning strong focus on customer care and guidance. It provides fruitful experiences for its guests with its value of care and services available within the hotel service. The Interatlanctic continental differentiates itself from those hotels that traditionally offers a top-of-the-market immersion by nature with its strong and flexible approach to the hotel rooms. It provides luxury service to holiday spot people (Dogru, 2017). This is the reason that has led Inteatlantic Continental to become a market leader within the alternative accommodation service sector, an ideal position Interatlantic continental ought to strive to maintain in Spain. To reach a determined goal, certain strategies and parameters are required to be undertaken. In this context, there will be discussion on competitor brand analysis with the apt marketing mix adaptations.
5.1 Competitor brand analysis
The Interatlantic continental has taken three five star rated hotels to make deep analysis of strong positioning within the market. It has chosen to compare these three markets on originality and authenticity level. It has taken many aspects for analysis to set its hotel in Spain such as quality of product and services, chain, size, locations, promotion, targeted groups etc. to gain as deep as to set its strategy (Krupskyi et al.2017). With the view of having a high competitive edge within the market, Interatlantic Continental appeals to its guests partly due to its uniqueness, luxuriousness, and service which will affect the same as its competitors. This report is focuses on three competitors: Marbella Club Hotel, Hospes Puerta de Alcalá, and Hotel Rector Salmanca
5.1.1 Marbella Club hotel
Marbella Club hotel is a meditterenean soothing beachfront paradise located at Av. Bulevar la Príncipe Alfonso de te Hohenlohe, s/n, 29603 Marbella, te Málaga, Spain. It provides several amenities to its customers. It provides spa, pool, hot tub, beach access for customers visiting to enjoy bathing facilities (Andreu et al. 2018). It provides marble designed bathrooms along with rainfall showers. It provides air-conditioned rooms, and wellness centres such as saunas to increase fitness. It provides food and drinks amenities with Bar, room service, restaurant, room service, breakfast etc. This beachfront hotel has landscaped gardens 4 km away from Puerto Banus shop area & 19 km away from Marbella Golf Resort. It provides free Wi-Fi within haute rooms and villas. The rooms offer a terrace with beautiful sea views (Andreu et al. 2018). The luxe 3-to-5 bedroom rooms have kitchens and private pools outdoors. Parking facility is provided here. Other amenities involve a botanical garden, gym, outdoor water pool and beach club.
5.1.2 Hospes Puerta de Alcalá
Hospes Puerta de Alcalá is a luxurious hotel that is located at Plaza de té la Independencia, 4, 28002 Madrid, Spain. A 4-minute walk-in from Retiro Station, this fancy hotel is 2 km away from Museo Prado & 4 km away from Plaza Mayor. It has its own value and belief in providing great adventure and quality of service through its effort (Jati, 2017). It really focuses on customers’ appealing approach. With its innovation and discovery, it is providing quality services to its customers. This hotel’s plush rooms have the features of hardwood floors, well-designated floors & ornate furnishings. The villas of this hotel facilitate free usage of Wi-Fi and Led flat-screen TVs. There are suits, soaking tubs with living rooms. Room service is provided there. This hotel provides elegant restaurants with decorated terraces giving a magnificent view of Spain. It has several cafe, bars and business centres (Jati, 2017). It involves the amenities of an exercise room, spa room and many more. Different types of fooding facilities such as dinner and breakfast buffet are provided. It provides the payment facilities of credit cards, debit cards and cash. With its motto to provide value of service to its customer, it renders services such as Grocery shop, social hours, wake up calls, housekeeping daily, baggage storage, gift shop, lift etc. It has a parking and transport facility for self-parking, airport shuttle, local shuttle etc.
5.1.3 Hotel Rector Salamanca
Hotel Rector Salamanca is located at Paseo del té Rector Esperabé, 10.00, 37008.00 Salamanca, Spain. It is a 7-minute walk-in from New Cathedral, Salamanca. This hotel is classified as a neoclassical stone pillar that is a 12-minute walk-in from Plaza Mayor (Ramírez-Hurtado et al. 2018). This magnificent hotel offers hardwood floor furnishings rooms and marbly made bathrooms. The plush rooms facilitate with free usage of Wi-Fi and Led Flat screens. It serves with the amenities such as wood-paneled walls, sitting areas, bathroom of freestanding tubs. It provides a free breakfast on the first visit. Its lobby lounge featured with oriental rugs and glass windows. It provides a child-friendly environment. It is generally focused on limited zones. It has no wellness centre and pool facilities. It is providing services by its popular amenities such as air-conditioned rooms and full service laundry facilities (Ramírez-Hurtado et al. 2018).
5.1.4 Brand position in Spain
With a view of having strong competition, it became necessary for Interatlantic continental to formulate brand strategy to attract guests. However, an opportunity is gained through the analysis that the demand for top-of-the-market products is high. Each hotel is opting to provide high quality products to capture a large market area (Casado Salguero et al. 2019). The parameter for excellence on quality of service to visitors of family and couples is found on occasions whereas in the off-season the business group and local people parameter is found to be high. However, the pricing factor varies in each hotel that can be assured that the services these hotels provide may not fully satisfy the customers. Hence, Interatlantic can take the advantage of this weakness and develop its strategy on pricing and quality of product.
6. Marketing Mix/standardization and adaptation decisions
Marketing mix assist the Interatlantic continental to choose an appropriate marketing strategy. This strategy will help the company in suitable allocating of budget and resources. Through this adaptation Interatlantic continental will effectively make marketing tactics as per promotional needs.
6.1 Recommended marketing mix
6.1.1 Standardized elements
Four components of the marketing mix will be standardised: Place, process, people, and promotion. This modification will help the Interatlantic to form the base of the brand and make the brand popular to international level.
6.1.1.1 Place
Interatlantic continental (IC) obtains high importance for its product placement as it directly connects to reach for customers. The IC will maintain stores conducted by the IC management group within all markets. Thus, Company-operated stores will give this hotel higher controllability over operations and store laying out designs (Andreu et al. 2020). Through these stores IC will interact with consumers and directly collect important information regarding customer behavior and feedback. These stores will give advantage in terms of making decisions of stocking product items.
6.1.1.2 Process
IC hotel will be making systematic processes within Spain to make sure that business will experience optimum growth. It has developed processes to maintain and manage quality. The Product will go under triple quality tests to ensure customers may receive the best product. Besides, the management will place a separate quality check and quality maintenance department (Esmaili et al. 2017). The quality department exhibits experts to ensure good quality of product. IC has defined distinct processes for managing people via streamlining its HRM. Thus, it will also define guidelines relating to recruitment, compensation, and training & performance appraisal for employees.
6.1.1.3 People
The marketing mix for IC hotel will be focusing on people development and building. This is the reason it realizes the significance of workers in building strong-customer relationships. IC will develop its workers by providing training, organizational and succession planning aspects. IC will make sure that all workers undergo training sessions for enhancement of skills (Thwala and Slabbert, 2018). This training will not only focus on the field but also on organizational and management skills. IC will work on strengthening organizational commitments with employees. It will build employee loyalty so people reflect optimize best at work. IC will remain one of the survival players within the industry as it is focusing on succession planning. IC will conduct succession planning to all managerial levels.
6.1.1.4 Promotion
IC marketing strategy places high significance for promotional tactics. These strategies allow the IC to interact with the customers and create influence. With the help of digital marketing, will corporate profiles on websites, portals, and all social media channels. It will use social media networks to engage the consumers directly with its product (TOMA et al. 2018). IC will have a loyalty program for its consumers. This loyalty card will allow the consumers redeeming points in return for exciting gifts and products. Each purchase will be entered into a loyalty card by IC and will get valued for points for the products’ value. This loyalty can be purchased on high worthy purchases.
6.1.2 Adapted elements
Product
Product is the important component for IC, thus it will maintain quality of product. Promise for high quality will provide IC a competitive advantage. The products will be manufactured and sold as easy to use products (TOMA et al. 2018). All products have simple instructions for usage. IC has adopted a wide portfolio of products that will help in reaching several targeted groups within the market.
Physical evidence
Physical evidence holds an important position in the marketing mix thus it has been adapted to influence the customers towards brand offerings. The management and store design of IC will be creative and exciting (TOMA et al. 2018). The “store atmosphere” created will make consumers feel comfortable and relaxed. Store design is essential for consumers to level nature of experience by its product
Prices
IC has chosen its premium pricing in the Spanish market. By utilizing this pricing strategy on its product will encourage favorable brands within targeted groups (Hesam et al. 2017). It will also encourage quality perception amongst customers. With this pricing policy, IC will successfully make some product ranges by restricting production and sale.
6.2 Outline of launch communications
The Interatlantic continental will carry out the promotional activities by social media network and it will encourage its advertisement through digital marketing. The channel will use several servers on websites, portals, Facebook,Youtube, Instagram in respect to create awareness for its product to all kinds of people (Hesam et al. 2017). Interatlantic Continental is targeting customers by using different methodology such as locations, behavior etc.
It has segmented its activities into 5 phases – initial planning – ascertaining of metrics and goal (product positioning); pre-launch activities – content development, planning, sales training; Sale & channel launch – availing tools to distributors; launch day – publicly unveiling of service and product; and post-launch follow-up – evaluating of metrics and evaluating market plan. Market influencers will stress on the significance of product launch via good communication. Steps of communication will include email & messages notifications, town hall designed meetings, internal and intranet social sites, and on-screens banners within the break room. IC will avoid marketing jargons while communicating with department members. It will focus on key messages that will be easily accessible and understandable. It will use metrics to look over launch performance & make comparisons with its objectives. It will establish ongoing plans to lead generations and create awareness. A content calendar will be developed to highlight deliverables, topics, themes, marketing channels and timings to promote launch. A style guide in terminology will be used in regards to new products and aspects of new product branding. A final pricing with distribution strategy will be made. Business leaders know the importance of social media that offers tangible value in creating awareness & building relationships which results in increasing revenue and leads. Thus, Celebrity will be hired to make short videos related to its product that will promote its product more efficiently.
7. Conclusion
The conducted study has provided a deep analysis on business expansion within the new market field Spain. Further showed the ways and techniques adopted to retain the attractiveness of customers. It provided with opportunity of top-of-the-market accommodation service in demand and provides the way to make new entry into the market. It highlighted the opportunity that new companies or hotels can enter by formulating a marketing mix plan. A deep insight about formulating a strategy and plan to enter into a new market can be obtained. The conducted study has provided for a new company with the favorable possibility to start it’s hotel welcoming its international guests at a high level in the Spanish market. It can take the advantage of its competitors’ weakness, absence of quality of services and product to attract customers as much as possible. Moreover, the new company can adopt some of the more elements of marketing mix to add value to its quality of service to make its product at best.
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