IB7013-8, WEEK 6 Global Marketing Environment
IB7013-8, WEEK 6 Global Marketing Environment IB7013-8
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This 8 page Class Notes was uploaded by JC11 on Saturday April 9, 2016. The Class Notes belongs to IB7013-8 at Northcentral University taught by in Spring 2016. Since its upload, it has received 31 views. For similar materials see Global Marketing Environment in General at Northcentral University.
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Date Created: 04/09/16
NORTHCENTRAL UNIVERSITY ASSIGNMENT COVER SHEET Student: THIS FORM MUST BE COMPLETELY FILLED IN Follow these procedures: If requested by your instructor, please include an assignment cover sheet. This will become the first page of your assignment. In addition, your assignment header should include your last name, first initial, course code, dash, and assignment number. This should be left justified, with the page number right justified. For example: Save a copy of your assignments: You may need to resubmit an assignment at your instructor’s request. Make sure you save your files in accessible location. Academic integrity: All work submitted in each course must be your own original work. This includes all assignments, exams, term papers, and other projects required by your instructor. Knowingly submitting another person’s work as your own, without properly citing the source of the work, is considered plagiarism. This will result in an unsatisfactory grade for the work submitted or for the entire course. It may also result in academic dismissal from the University. IB701386 Gisela Salas, PhD Global Marketing Environment Assignment 6 Faculty Use Only <Faculty comments here> <Faculty Name> 2 Introduction Brands that expand globally are driven by a number of factors. These factors are the areas that make a brand standout from all other brands around the world. By not only creating a brand image, but a strong brand personality, a company can distinguish itself from all others. This concept can be seen in companies that have taken the time to point out specific attributes of one’s product or service. This week’s assignment will focus on the global brand of the Four Seasons Hotel chain. The Four Seasons is known around the world for luxury, quality, exceptional service, and the ability to meet or exceed even the most distinguishing customer’s tastes. This paper will critically evaluate the following areas: (1) brand’s current marketplace, (2) the key drivers in the international marketplace, and (3) the international drivers and strategic efforts that are likely to change more often and at a quicker pace than others. By identifying each area, an international marketer can identify what drives the market and strategically manage the brand to fit into desired categories. A company will need to continue to improvise and change strategies to stay in the desired marketplace and be perceived as the prominent global brand. Competitive Marketplace The Four Seasons chain of hotels is known worldwide for impeccable service, exceptionally high quality facilities, and the ability to meet or exceed any customer’s expectations. While quality hotels have been around for quite some time, the fivestar hotel rating system didn’t come into play until 1958 when Forbes Travel Guide issued a rating system (“Hotel Rating,” 2015). The luxury hotel market is exceptionally competitive and a number of criteria must be met to be considered for the 5 Star rating. The requirements to become a known as a 5Star hotel/resort are many, but once in this market, the company must find ways to stand 3 out. The Four Seasons hotel chain has certainly done implanted discriminators and stands out for their beautiful hotels around the world. The management at each location is trained to take care of every small detail. Not only are the staff trained to the highest level, the facilities themselves are top of of the line. The facilities are also created with the local environment to show the influences of the cultures the hotel is located within. Examples of how the company does this can be seen in the Four Seasons Aspen. The hotel in this location depicts structures of stone and wood, while the Four Seasons Costa Rica is open air and meets a beach and foliage theme. By creating a global presence, a company can grow much more rapidly. People tend to associate brands that are seen around the world with high levels of success and being a better product. People learn what to expect from a particular brand the more often they see it. The competitive environment in which the Four Seasons operates in is high. Guests now have the ability to choose from a number of different types of facilities. The potential direct competitors include a variety of hotel chains such as Hyatt, Hilton, Intercontinental, and the RitzCarlton. In addition to other hotels and resorts, a guest can now choose to stay only at hotels, apartments, flats, and houses. Luxury accommodations are now much easier to acquire due to technology and the shear volume of accommodations available. In addition to understanding the potential competitors, it is important to also understand how the company became so successful. The Four Seasons began as a Canadian based company back in 1961 by opening their first location. In the next decade, the company expanded to the new location into London, England and the U.S. Thirty years later, the company was known for high quality locations and service and they began to move into the global marketplace within exotic locations such as Asia and Latin America. As of the end of this year, the Four Seasons is 4 expected to have a total of 100 total locations (“Four Seasons History”, 2015). A consideration that the Four Seasons must make as it enters into each new location could be whether or not to add another line of hotels under a new name to be conducive to families that may be a bit less expensive. An example of a company that has done well by utilizing this strategy would be the Marriott. The Marriott has a number of affiliated brands including the JW Marriott, the Marriott, and the Residence Inn. Another consideration could be to develop a strategic alliance with another hotel chain, essentially developing a partnership between the two (Czinkota & Ronkainen, 2013). Key Drivers The key drivers an international marketer must understand while planning for the international marketplace fall under the heading of consumer behavior. A guest generally either wants or can afford a certain level of quality within a hotel stay. If a guest can afford the best, the brand known for consistently being the best, is the Four Seasons. The unique experience is one of the most important factors for guests staying in the properties. The role of this driver is significant. International marketers must identify the best way to incorporate the highest level of quality into the product they are distributing. Hotels are extremely competitive by nature and must stay up on not only consumer desires but how to stay ahead of competitors (JuhászDóra, 2015). Another important driver is fully developing an online platform. These platforms allow guests to easily connect with the market and the various accommodation options. It also is a place to view the property, create booking, compare properties, and make a final decision. During the stay the online platforms allow the guest to login into the account, view charges, 5 coordinate with staff, and provide guest satisfaction ratings (Foscht, Maloles, Cesar, Swoboda, Morschett, & Sinha, 2008). The role this driver serves is vital to the Four Season’s operation. Guests and potential guests expect that a property providing such a high level of service will have to meet a certain standard. This driver must be in place and work efficiently or the guest booking a hotel will most likely find another hotel for the stay. International Drivers and Strategic Efforts Consumer behavior is one of the international drivers that will change more quickly and more often. Trying to predict the changes that will affect consumers and their choices is not always the easiest thing for a marketer to do. It will take a strategy that involves a significant amount of current data to understand how to affect future changes. The data will include consumer preference, and culture components such as language, religion, values, and standards. Components of culture are directly influence how people perceive different things. The marketing strategy will need to be based on each individual culture. Also, the brand standards will need to be continuously evaluated. The reason for this is that an individual perceives a brand personality each and every time the person comes in contact with a product either directly or indirectly. This concept certainly makes logical sense; as humans make associations and judgments each time a brand or product is encountered. Another concept that needs to be reviewed for rapid change, is the logistics aspect of bringing in goods and supplies for the hotel chain around the world. Gao and Shi (2011) discussed the concept of global account management and the need for consolidating like locations. With the Four Seasons and the expansion into various regions of the world, a hub would be beneficial. For example, the food, especially meat products are shipped in from the 6 U.S. or a location where prime cuts of meat can be acquired. In Costa Rica the beef cows raised locally have a significantly different taste than those raised in the states. It may be that the cows eat different foods such as grass versus corn fed animals. It could also be that the breed of cow is not the same which creates a different flavoring in the meat. As people vacation from the U.S. and Europe to Central America into locations like the Four Seasons, a certain expectation must be met. The meat is expected to be the top of the line and very similar in taste and texture as what they are used to. To ensure this high expectation level is met, the Four Seasons must develop a supply chain to import the meat to the selected locations. For locations located in Central America, the meat may be shipped directly from the states. If the location was instead Tahiti, there may be a logistics center managed by the global accounts manager to collect and ship goods from that point. This way all necessary items could be collected at one central center and divvied up for all locations in the South Pacific or Central America. For the top of the line hotel and restaurant industry this is extremely important when attempting to earn the highest rates and return guests. Conclusion Brands that expand globally are driven by a number of factors. These factors are the areas that make a brand standout from all other brands around the world. By not only creating a brand image, but a strong brand personality, a company can distinguish itself from all others. This concept can be seen in companies that have taken the time to point out specific attributes of one’s product or service. This week’s assignment focused on the global brand of the Four Seasons Hotel chain. The Four Seasons is known around the world for luxury, quality, exceptional service, and the ability to meet or exceed even the most distinguishing customer’s 7 tastes. This paper critically evaluated the following areas: (1) brand’s current marketplace, (2) the key drivers in the international marketplace, and (3) the international drivers and strategic efforts that are likely to change more often and at a quicker pace than others. By identifying each area, an international marketer can identify what drives the market and strategically manage the brand to fit into desired categories. A company will need to continue to improvise and change strategies to stay in the desired marketplace and be perceived as the prominent global brand. 8 References Czinkota, M. R., & Ronkainen, I. A. (2013). International Marketing. Mason: SouthWestern Foscht, T., Maloles, Cesar, I.,II, Swoboda, B., Morschett, D., & Sinha, I. (2008). The impact of culture on brand perceptions: A sixnation study. The Journal of Product and Brand Management, 17(3), 131142. doi:10.1108/10610420810875052 Four Seasons History. (2015). Retrieved from http://www.fourseasons.com/ about_four_seasons/ fourseasonshistory/ Gao, T. & Shi, L. H. (2011). How do multinational suppliers formulate mechanisms of global account coordination? An integrative framework and empirical study. Journal of International Marketing, 19(4), 6187. doi:10.1509/jim.11.0005 Hotel Rating. (2015). Retrieved from https://en.wikipedia.org/wiki/Hotel_rating JuhászDóra, K. (2015). Hotel competitiveness measurement methods. Knowledge Horizons.Economics, 7(3), 94100. Retrieved from http://orizonturi.ucdc.ro
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