Global Marketing for Hospitality and Tourism

international market for Hospitality and TourismAccording to the authors research, the dopeonical summary of this spread abroad is that Accor is one of the leading hotel faults in the cordial reception grocery store with to a greater extent than 4,000 hotels world wide. The Accor is the place name for unhomogeneous hotels such as Sofitel, Novotel, Motel 6, Studio 6, Red Roof Inn, Ibis, Etap, and Formula1. For the expansion of the tune in the orbicular nutrient grocery, the Accor grouping of hotels atomic act 18 continuously concent paygrade for the expansion of the parvenu properties in various emerging countries like China, India where the dictate of tourism has been increasing at a tremendous sum up and help to improve the frugal structure of the coun subdue. The succeeding(a) report go forth outline the everyplace any discipline about(predicate) the ac companionships orbiculate mail, strategies, global competitors, its onward motion strategies etc. The report in any case focuses on the primitive global functionings of the lodge that how its doing the forwarding of its instigators in UK as swell up as in India. The Accor inciter fork over to organise their scheme genuinely cargonfully as they strike huge competitors in the market. Accor rat decl be dis confusable segment market hotel like Budget, economical, mid outstrip upscale.INTRODUCTIONParis-based Accor is europiums leading hospitality group with al near 4,000 hotels in 85 countries around the world. In 1967 Grard Pelisson and Paul Dubrule opened their first Novotel hotel on a roadside come out Lille in northern France. Accor brooks hotels in every range, from the five-star Sofitel chain to budget- termsd Formule 1, Etap, and Ibis in Europe, Motel 6 and Red Roof Inns in the United States, and midrange Novotel and Mercure in Europe and the Asia/ Pacific region. In addition to its hotel properties, Accor also provides its worldwide guest base with food serve (restaurants and employee vouchers), casinos, and onboard railway line operate (sleeping berths and dining) (www.accor.com/history.html).The Accor group primarily operates a chain of hotels and also provides corporal service. The group has a global presence and has properties worldwide. The Accor fool manages 899 hotels in Europe (excluding France) with 53 Sofitel, 161 Novotel, 270 Mercure, 6 Suite hotels, 278 Ibis, 85 Etap Hotels, 44 Formule 1 with 39,000 employees. entirely hotels fork up a different rating according to their standard and services under Accor. Accor hotel has a rich history started its first hotel in 1967 and instantaneously managing much than 4000 hotels world wide with different imperfection names.Sofitel Sofitel hotel operates worlds leading convergenceion line in the upper scale market. The Sofitel hotels consist of 185 hotels worldwide with leading competitors for the 5 star rating hotels in the market.Novotel The Novotel hotels comes unde r mid scale rating brand in the market with 398 hotels world wide and approximatelyly business depends on the business travelers.Mercure The Mercure hotel includes several former(a) brands such as Libertel, Parthenon, Orbis hotels. The Mercure brand consists of 736 hotels worldwide.Suite hotels Suite hotels were introduced in the year 1999 with a very impertinently concept of attracting wrong conscious nodes with better services. Currently, the Suite hotels consist of 30 properties with in France, Ger some(prenominal).Ibis The Ibis hotels comprise of 720 properties world wide providing excellent services to their customers and most of the Ibis hotels are located in the centre of the urban center.Redroof The Redroof consists of 344 properties with in the United States and scram the economy rating image in the market in ground of excellence in services in the hospitality market.Motel 6 Motel 6 offers the crush determine of any national chain .In the year 1962, the Motel 6 were offering there accommodation at a very suffering price of $6 per night and now a days have a great image in the budget segment in the hospitality sector. The Motel 6 operates 862 hotels in the United states and Canada ( www. motel6.com)Etap The Etap brand operates 331 hotels worldwide. Etap hotels are fundamentalally know for there economy accommodations (www.accor.com).Accor focuses repeatedly on a ad hoc vision for growth, and believes in sustainable, profitable growth by dint of three pillarsA geographically and structurally balanced business portfolio.A disciplined, result oriented solicitude of resources and assets.A set of powerful aligned brands.These pillars stood byout Accors net profit expansion and continue to guide Accors growth.Accor also ad proficiented its schema for base into India in late 2002. While entering into the Indian market they immovable to focus on the brands such as Ibis, Formule 1 and Etap brands in the markets through a joint venture . The basic rationale for introducing small brands into India was to put on the result of the people in Indian market that whether they prefer budget hotels or they would like to go with big brands such as Sofitel, Novotel and then depending on these tests Accor determined to fully enter the Indian market (www.accor unionhistory.mht.com).MAIN remainsHistory of the chosen brand (Sofitel) Accor Group-The first Sofitel hotel was opened in France in 1964. In 1974 Sofitel did grand opening of their hotel in U.S.A. in Minneapolis, Minnesota. process the year 1995 it included 100 hotels with, 12,500 employees throughout 40 countries worldwide. In 2002 it did major(ip) International expansion, Sofitel opens its doors in Europe (London, Marseille, Cologne) Africa (Marrakech) North America (Chicago, Washington, Montreal)South America (Quito) and Asia (Shanghai, Bangkok) (www.sofitel.com/gb/history.shtml). The company undertook extensive renovation work at several establishments, in 2006 i ncluding Los Angeles the signature Sofitel hotel in the United States, and Polynesia and continued expanding in Europe. Sofitel brand cognisance of continually increasing 10 of its hotels made the Gold list of the honored Cond Nast Traveller magazine, and it was voted Best Hotel Chain in Europe by the readers of origin Traveller Magazine. Sofitel became an independent business unit last year (2008) within the Accor group and implemented its new luxury strategy on its ne cardinalrk. With a network comprised of 161 hotels in 2008, Sofitel has received 23 awards since January. By the end of the year, 70 properties were brought in line with the brands new prestige image. In 2009 Sofitel launched its two babe brands, Sofitel Legend and So by Sofitel (www.sofitel.com/gb/history.shtml).Rationale for selected farmingAs Emerging Markets turn into the growth engines of the 21st century, s milder growth at home has led investors and hotel companies to pursue aggressive expansion abroad as they look to capture new customers and grow winning global brands. At time when most companies are trading carefully, Accor Hospitality is showing boldness in the Indian market by its continued investments in Indian projects whereas freezing those in China until 2011. As Jean-Michel Casse, VP India Operations for the group talked about its assured investments and ramp upments in India. India market is unpredictable, yet there is a potent hope of adopt attachs this year because in 2010 the Common riches games are victorious place in Indian in naked Delhi. Accor hotels group is spend in India through a joint venture with Inter eyeball Hotels, for Ibis hotel brand in India. The wares developing in India are much more advanced than its existing European properties and the Accor group is putting best efforts in developing them. The short term manoeuver for the company is to have 30 hotels under its operations, under different brands by 2011. Accor has also successfully ta ke in for two sites at Delhi International Airport Private Limited (DIAL) proposed hotel district development, for which market feasibility study is being carried out to identify the salutary brand positioning.The company is opening Sofitel Mumbai (which is the main business hub of the country as well as house of the Bollywood or Indian film industry) Juhu Beach. This bequeath be third property in the country, after Novotel Hyderabad Airport and Novotel Hyderabad. On the other hand, the group is also progressing with its budget brand Formule1. The group act to open nine Formule1 developments in cities including one in Thiruvananthapuram (most tourist visited urban center in Kerala) and tushing to add 10 new deals each year for this brand as the business allow for grow. The first Formule1 brand will be operational by the second half of 2010 in Pune (the famous city for best engineering colleges), Bangalore (garden city of India) and Ahmedabad. Accor Hospitality also brought it s mid scale Mercure brand to India.. (http//www.expresshospitality.com/20090630/market07.shtml)On managing its properties in India, Accor has taken a decision to take away managers for top positions from within to address the groups stringent brand philosophy and strategy need in India, looking at future demand for manpower. Their different brands have different approach. They look at empowering skills to remove layers, for example, in Ibis and for Novotel, Mercure and Formule1, just can non take anybody who doesnt control their brand structure. To inculcate that understanding, the group plan to require training for employees of the hotels so that they can be trained to manage properties as they expand, in future. The group has already planned for a training university Accor honorary society, to be opened in 2010 and would be established with possible recessnership along with an Indian hotel management institute. The group is taking this step to get more Indians for the manageme nt level by first getting them trained, positioning them in the European market and bring them back to manage properties in India. The Accor Academy will be established in Bengaluru, Hyderabad or Delhi, depending on the batch of employees (http//www.expresshospitality.com/20090630/market07.shtml)According to the (Keegan1995) global merchandising is the process of focusing on the resources (people, management and physical assets) and the object lenss of an organization on its global markets opportunities and threats. Today global selling is essential non only for the realization of the full success potency of the business, tho even more critically for the survival of the business.Key drivers for the global merchandising-Market ask According to Keegan (1995) this is the factor that generally focuses the company to operate globally by seeing overall trade needs like what customer demands. Every human has its own preferences and due to which demand for everyone differs. Compa ny before going globally should first can the market needs as to see what mannequin of product will be useful to the customer. According to the selected company (Sofitel) and the chosen country (India) should introduce the product which is affordable to everyone in the market so as to capture the faithful market share. For this company should first target that what kind of customers it is going to provide the services. Market needs in context to hospitality industry actor that what kind of facilities the hotel is providing. Accor group of hotels have different brands operating under it. So every brand has its own target market and different strategies. Generally, customer demands when they travel a nifty comfortable place to stay, musical note food and leisure activities or facilities. So the hotel should first analyse its target market, that what kind of customers, it is going to provide its facilities and services. Doing analyses on the market needs helps the company to get by globally with its other competitors. Some basic segment needs can be met with a global approach in selected product markets. The ad campaign for a global product may be a good appeal for a company to introduce its product all over the world and also marching the market needs (Keegan 1995). engineering science It is a universal, uniform, consistent factor across national and pagan boundaries. If a company knows how to manage the technology in one country it fathers easier for the company to manage globally. There are no cultural boundaries saltationing the coating of technology. Once, technology develops it becomes available over in the world. For the chosen company for this report it is necessary to develop its technology accordingly by weighing both the markets UK as well as India. It should do so, to make its product well-know(prenominal) everywhere ( contact, 2001 Anderson, 1994).Cost The pressure for globalisation is intense as new products entail major investm ents and long period of development. Uniformity can drive pig research, engineering, design and production apostrophize across business functions. The large court incurred on new products and risk of product development may be recovered in the global market place as no single market is enough to support investment of the size. pure tone The quality of the product reflects the in track downed function and performance of the product in the market. Quality of the product which a global company offers to the market is the main driver which forces the company to operate globally. If, the response of the product quality is good in one country, than company may undertake to open or become global by providing the same level of product quality to other global markets, so as to sustain in the global market. As Sofitel, which in senior elevated category is the most preferred brand of the Accor group of hotels for the customers, is due to its product similarity and quality which it provi des to the guest (Hennesey1995 Keegan 1995). brandmarks Global CompetitorsAs Sofitel hotel comes under upscale star category so the competitors of this brand in hospitality industry are mainly Grand Hyatt (Hyatt group), Taj hotels, the Oberois, Radisson, Crown plaza, Shangri-la. payable to such high range of competitors Sofitel is providing good services to its guests so as to get good revenue from its customers. In guild to compete in the market it is opening its 5 new hotels in India (Ahmedabad, Mumbai, Jaipur Pink City, and brand-new Delhi). Keeping in mind the current scenario of business purlieu that is deferral the hotel should also keep an eye on its price .Due to turning point, customers now seek quality service at low price(e.g. Holiday Inn brand has been relaunched with upgrading its services and this is done in time of recession so that it gets regard from the customers to get good business) so in order to get in stand with their competitors it should introduce so me good price to the market and try to provide good level of services as it is already providing but at a affordable rate. Sofitel believes it is essential to contribute to their development and well-being, which includes example and training, contributing to health, topical anesthetic purchasing and, in general, any measure that contributes to local anaesthetic social and economic development. The quality of their local roots also depends on the ability to protect the natural surroundings. So the employees look for new slipway every day to use slight water and less energy, to sheer waste.Since, from the opening of the first Sofitel in France in 1964, team members have been impelled by a pioneering spirit of conquest. A key to their success, this attitude has over the years shaped the brands enculturation, which is the cement that binds their team members while respecting difference in their ages, cultures and positions within the organization (www.sofitel.com/gb/history.ht ml).Cultural issues which may stir the companys operationLanguage differences this is problem concerning towards the different dictions spoken in different countries. So, company operating globally should take care and respect the languages of different countries. The work names, brands slogans, gross revenue presentation material and advertizing content employ by companies in their domestic market may have to be changed when apply in other distant market. A slogan or humansise material which is impelling in one language may hatch offensive in other language. Companies while advertising or marketing their brand should see that translation is accurate and must convey similar meaning (Kotler and Armstrong (2004).Cultural differences as stated by Chee and Harris (1993) dimensions of culture (e.g. religion, beliefs and attitudes, education) also play important role in the converse process. Cultures also displace the likes and dislikes of the customers, their attitudes to wards things and preferences for particular product and services. Keeping in mind the Indian market, company needs to take care of the cultural values and should know cultural likes and dislikes in order to get success in the future as company is going to introduce new products and properties in the market.Economic differences economic condition also affects the communication process. Literacy level and the degree of urbanization have a significant influence on communication. The discretionary income of individuals and families directly affect their attitudes towards products. Necessities in one country can be luxurious in other country (Kotler and Armstrong (2004).Pricing for the brand and its strategiesOne of the major elements of the marketing tittup is price. As stated by Anderson (1994), Pricing is an important strategical issue because it is related to product positioning. Furthermore, set affects other marketing mix elements such as product features, channel decisions, an d progress. But according to interlocutor (2001) price is a vital part of whole marketing process. It may also be a factor in determining the sales of the product. Every company should fix it price according to the demand of the product, high price may result in less demand in highly belligerent market. If company wants to sell the product at higher(prenominal) price, then it should add more value to its existing product as to compete in the market with other similar products. Before decision making the price, company should set a target of what it actually wants to achieve in the marketplace. Setting the price which is affordable to everyone can help the company to increase the sales of the product and also helps to capture a large market share.While there is no single definition to determine set, the avocation is a general sequence that might be followed for developing the pricing of a new product as Sofitel is deciding to open its more hotels in India.Develop marketing stra tegy perform marketing analysis to ensure that what kind of customers they are going to target and positioning of the senior(a) products so as to see what was the response of customers towards it and also to set the price according the target market which help in increasing demand. consider marketing mix decisions define the product through advertising so that the customers are known about the upcoming product in the market as Indian customers are very easily attracted towards new products by seeing its more and more advertising, distribution of the product in the target market by marketing professionals in that area, and by adopting several forwardingal techniques such as using media (television, newspapers, magazines and broachers(www.hospitalitybusiness.com Jobber(2001).Estimate the demand curve understand how measurement demanded varies with price. Because there is a birth between price and quantity demanded, it is important to understand the impact of pricing on sales by estimating the demand curve for the product. As during this time in the UK market recession has affected very badly so hotel group should reduce the price of its rooms but shouldnt cut down the level of service it is providing shortly to its customers. Where as Indian economy is increasing at good rate so it can increase its price little bit by increasing some added facilities to its products. If in future the company sees increase in demand then it can increase the price accordingly.Calculate cost -as discussed by Hennesy (1995) include fixed and variable costs associated with the product. If the firm has determined to launch the product, there likely is at least a basic understanding of the costs involved otherwise, there might be no profit to be made. The production cost of the product sets the lower limit of what the firm might budge, and determines the profit margin at higher prices. The kernel unit cost of a producing a product is composed of the variable cost of produc ing each additional unit and fixed costs that are incurred regardless of the quantity produced. The pricing policy should consider both types of costs. actualize environmental factors evaluate competitor actions to compete in the market and should see that what strategies are used by others competitors in the market in order to get good business, understand legal constraints towards the environment, to save it and to become environment friendly. Pricing must take into bank bill the competitive and legal environment in which the company operates, Anderson (1994). From a competitive standpoint, the firm must consider the implications of its pricing on the pricing decisions of competitors. For example, setting the price too low may risk a price war that may not be in the best interest of every side. Setting the price too high may attract a large number of competitors who want to share in the profits.Determine pricing using information collected in the above steps, select a pricing regularity, develop the pricing structure, and define discounts (Jobber, 2001).For new products, the pricing objective often is either to maximize profit margin or to maximize quantity (market share). To meet these objectives, there are two main strategies which company can use. grazing price attempts to skim the cream off the top of the market by setting a high price and selling to those customers who are less price sensitive. Skimming is a strategy used to pursue the objective of profit margin maximization. As in regard to Sofitel hotels they can charge high price in Indian market at present because the economy is developing at a good rate by which people have now started to prefer good quality of products and services by not memory in mind the price which they have to pay for their product. And also keeping in mind the Common wealth games which are going to take place in 2010 in New Delhi, company can increase its price for the product as many tourist and different people will b e visiting the country to get it on the games so its nice time to do a good business, and that too by charging products at some high price, also keeping an eye on the competitors in the market or near by area.Penetration pricing as stated by Dobson and Anderson (1994) this strategy aims to achieve highest possible sales volume by fixing the price aimed to achieve the target sales. This is done so that sales level is high and enough for the achievement of sales in production and distribution of the product thus leading to high level of long term profits.The pricing objective depends on many factors including production cost, existence of economies of scale, product differentiation, rate of product diffusion, the firms resources, and the products anticipated price elasticity of demand (Kotler Armstrong (2004).Marketing dodgingAccording to Fill (2004) before the product is developed, the marketing strategy is formulated, including target market selection and product positioning. As stated by Keegan (1995) marketing strategy determines the choice of target market segment, positioning, marketing mix, and al kettle of fish of resources. Marketing strategy is a powerful process that gives an organization a competitive advantage in the marketplace. A marketing strategy also serves as the foundation of a marketing plan.In 2005, Sofitel focused on customer relaxation and wellness, variety of food service offering country by country and introducing the employee training programs for excellence service and reception quality (www.sofitel.com/gb/history.html). As part of Accors new business model announced in October, the company is repositioning its Sofitel brand to stand for luxury, while simultaneously intromission two sub-brands (Sofitel Legend and So by Sofitel) and a sister brand (Pullman Hotels and Resorts), all with the goal of increasing average room rates and clashing more fragmented demand from a growing international clientele. The brand already is working to redefine itself, focusing specifically on implementing new luxury service standards through significant investment in rung training. To help solidify Sofitels new identity, the brand has a new logo (the link, which means that human relations are at the heart of luxury), and a new advertising campaign is set to launch in June. Overall, Accor for its brand has invested some 35 million for marketing the new Sofitel and its sub- and sister-brands (Ref http//www.hotelsmag.com/article).Relationship marketing strategiesRelationship marketing strategies helps to motivate their employees to maintain a good relationship with there customers for the repeat business. To retain customers, the company have to offers various best deals, package discounts, complimentary gifts. Various loyalty and incentive programs have been unionised by the Accor group of hotels to motivate distribution channels. subjection card Loyalty programsThe Accor hospitality group facilitates their customer with va rious loyalty cards such as Mouvango loyalty cards. In 2007, the Accor Mouvango loyalty card generated 320,000 room nights in Accor hotels, compared with 250,000 in 2006, an increase of 28% (http //www. accor.com).In 2007, Accor loyalty programs were further enhanceNew discounts were offered to holders of the Accor Favorite Guest card.Holders of the Accor Favorite Guest and Accor American behave cards can now earn points.Corporate Payment CardsAccor hotels have done partnership with American Express to create bodily payment cards The Corporate Card The corporate cards are created by Accor group which enables their cardholders customer to pay for their expenses direct to their card and enjoy various beneficial reductions in the payment of their bills.The Corporate American affair Cards The Corporate American Cards allows members companies to benefit from an annual ex post facto reduction on expenditure at Accor properties. (http //www.accorhotels.com).The Six foundations of Acco rs strategyStepping up the transformation processA growth and innovation dynamicPowerful, complementary, value brandsUnique skills to support the brandsPeople, the companys most important asset.Growth that creates opportunities for everyone.(http//www.accor.com/en/group.html)Brand Advertising-According to Hennessy (1995) brand can be defined as an identifying symbol, passwords, or mark that distinguishes a product or company from its competitors. usually brands are registered (trademarked) with a regulatory authority and so cannot be used freely by other parties. For many products and companies, branding is an essential part of marketing. But on the other hand, as stated by Jobber (2001) its all about getting noticed. A quality, well thought through brand concept is essential for making your product different from others in the market, doing publicity of the product under the brand and using effective promotion techniques to make the product known to the customers.Promotion Accor ding to Walters and Toyne (1993) promotion is the most visible and probably the most controversial marketing activity undertaken by the firm. Basically, the company involved in foreign marketing generally faces two main steps for promotion. Firstly, the company has to develop a customized or limited promotion strategy for each foreign market to take into account differences in some things such as product offerings, brands distribution activities and sales goal. Secondly, the promotion strategy may also have to be set because of local differences in socio cultural, educational and economic attributes of the targeted buyers. The main purpose of promotion for a company is to inform, educate persuade and timed response from a particular market or market segment.Brand Promotion in India- practice of vehicle in this the brand is promoted by putting the location of the website on the personal vehicle and business vehicle. It is very effective when it comes to the promotion of a new launc hed product of the brand. This is considered as the most appropriate method for promotion because when at any times if people are soft on(p) in traffic how many people will see the advertising of the brand and website of the company at one time and also does not require much high cost to advertise by this method(Fill 2004).Use word of mouth Word of mouth is one of the very effective promotion strategies. The main reason is because it passes on a message of trust. When soulfulness has already used your product and services they passed a favorable word to mortal else it is great because the recipient of the information is already listening to someone they trust. In India this things matters a lot for a brand to get familiar in the public and customers are also attracted towards your product when they listen the blessing of the product from others mouth (http//marketing.about.com).Promoting through public transportation- in this , the brand can be promoted by putting logos , poste rs , broachers in the public transport means such as in India it can be done by pasting adds of the brand in metro(Delhi) , in Mumbai it can be done through Mumbai local trains and taxis. This helps in making the brand known to the general public easy and in a faster way. As lots people travel daily for their workplace through local transport so its become easy to advertise the brand. And also perfunctory if people are seeing the same advertisement everyday they tend to buy or use the product once.Brands global promotion techniquesGlobal Promotion Strategies as stated by Kotler and Armstrong (2004) deal with the way a business advertises when it expands to a global market and sells to a consumer base in a different country and culture. Global promotion strategies deal with rescue of marketing concept that does not always translate into the language of the target consumer nation. If global promotion strategies are done poorly by a business it could kill any chances of gaining marke t share in a target nation economy. Here are some global promotion strategies.Use the right transcriber This global promotion strategy will include designing marketing and communications materials that are written in the native language of the foreign country or of the target consumer culture. This is an explicit strategy however one must use the right translator to do this. According to this report the Sofitel should promote its brand in (Hindi language) which is known as native language of India. Remember that translators only translate into a target language. So, company should select the translator who is having good knowledge of the language so that the brand is promoted through right message in the foreign country and the customers should also understand it. Unless a translators target language (what the communication is getting translated to) is also that persons native language, it is highly unlikely that company will get the proper translation for their marketing material s (http//www.marketwire.com Fill (2004).Be culturally sensitive as said by Anderson (1995) this is obvious for each brand to do a cultural study of targeted market in which they are going to provide the services. For the chosen brand Sofitel its necessary to study the culture and ethics of Indian customers so that the brand is able to provide the